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		10,000
Standard direct labor hours		26,000
Budgeted overhead
Variable overhead costs
Indirect materials	$	15,600
Indirect labor		26,000
Power		7,800
Maintenance		2,600
Total variable costs		52,000
Fixed overhead costs
Rent of factory building		22,000
DepreciationMachinery		10,700
Supervisory salaries		21,900
Total fixed costs		54,600
Total overhead costs	$	106,600

During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs:

Overhead costs (actual)
Indirect materials	$	15,600
Indirect labor		28,800
Power		8,775
Maintenance		3,555
Rent of factory building		22,000
DepreciationMachinery		10,700
Supervisory salaries		25,200
Total actual overhead costs	$	114,630

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 11,250 units.

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 11,250 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 favorable, unfavorable, and no variance.) Controllable variance Total actual overhead Flexible budget overhead Variable Fixed Total 0 Overhead controllable variance Required 2 Required 1 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 the actual activity level of 11,2 50 units. Complete this question by entering your answers in the tabs below. Required 1 Required 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 Total budgeted fixed OH Total fixed overhead applied Volume variance Required 1 Required 3 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 11,250 units. Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 1 Prepare an overhead variance report at the actual activity level of 11,250 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) JAMES CORP. Overhead Variance Report For Month Ended May 31 Expected production volume Production level achieved Volume variance Flexible Budget Controllable Variance Variances Fav./Unfav. Actual Results Variable overhead costs: Indirect materials Indirect labor Power Maintenance Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total overhead costs Required 2 Required 3>