James Corp, applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels Overhead Budget 80% Production in units 10, eee Standard direct labor hours 25,000 Budgeted overhead Variable overhead costs Indirect materials $18,000 Indirect labor 25,000 Power 5.ee Maintenance 2.000 Total variable costs S@,000 Fixed overhead costs Rent of factory building 18,000 Depreciation Machinery 11,500 Supervisory salaries 15.500 Total fixed costs 45,000 Total overhead costs 595.000 During May, the company operated at 90% capacity (11.250 units) and incurred the following actual overhead costs: Overhead Costs Indirect materials $ 18,000 Indirect labor 27.875 Power 5,625 Maintenance 3.065 Rent of factory building 18,000 Depreciation Machinery 11.500 Supervisory salaries 18.500 Total actual overhead costs $102.565 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance 3. Prepare an overhead variance report at the actual activity level of 11250 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance. Classify as favorable or unfavorable. $ 102,565 Controllable variance Total actual overhead Flexible budget overhead Variable Fixed Total 45,000 45,000 Overhead controllable variance Recure Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Do not round intermediate calculations.) Volume Variance Volume variance Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 11,250 units. Classify as favorable or unfavorable. (Do not round Intermediate calculations.) JAMES CORP. Overhead Variance Report For Month Ended May 31 Expected production volume Production level achieved Volume variance Actual Controllable Variance Flexible Budget Variances Fav./Unfav. Results Variable overhead costs: Fixed overhead costs: Total overhead costs