James Corp, applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget Operating Levels 80% 8,000 30,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation Machinery Supervisory salaries Total fixed costs Total overhead costs $ 21,000 30,000 7,200 4,100 63,00 17.000 11,400 25,600 54,000 $117,000 During May, the company operated at 90% capacity (9.000 units) and incurred the following actual overhead costs Overhead costs (actual) Indirect materials $ 21,000 During May, the company operated at 90% capacity (9,000 units) and incurred the following actual overhead costs: Overhead costs (actual) Indirect materials $ 21,000 Indirect labor 33,550 Power 8,100 Maintenance 6,210 Rent of factory building 17,000 Depreciation Machinery 11,400 Supervisory salaries 28,500 Total actual overhead costs $125,760 1. Compute the overhead controllable variance and classify it as favorable or unfavorable 2. Compute the overhead volume variance and classify it as favorable or unfavorable 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance and classify it as favorable or unfavorable (Indicate the effect of each variance by selecting for favorablo, unfavorable, and no variance Required 1 Required 2 Required 3 Compute the overhead controllable variance and classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable variance Total actual overhead Flexible budget overhead 0 Total Overhead controllable variance Required 1 Requirea 2 Required 3 Compute the overhead volume variance and classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Volume Variance Volume variance ALLO Overlaat Variance Repari For Month Ended May 31 Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs Flexible Budget Actual Results Variances Fay/Unlay. Fixed overhead costs