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 Production in units standard direct labor hours Budgeted overhead 8e% 10,000 32,00e Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs $ 20,9ee 32,80e 8,0e0 4,0ee 64,000 Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total fixed costs 14,90e 12,93e 31,600 57,688 $121,608 Total overhead costs During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs Overhead Costs Indirect materials Indirect labor POwer Maintenance Rent of factory building Depreciation-Machinery Supervisory salaries $ 20,9ee 35,700 9,0ee 5, 34e 14,90e 12,9ee 35,1e0 $131,148 Total actual overhead costs 1. Compute the overhead controllable varlance 2. Compute the overhead volume varlance 3. Prepare an overhead varlance report at the actual activity level of 11,250 units