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:

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 Operating Levels 10,000 26,000 80% $18, 200 26,000 5,200 2,600 52,000 19,000 11,600 16, 200 46,800 $98,800 During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs: Overhead costs (actual) Indirect materials Indirect labor Power Maintenance Rent of factory building Depreciation Machinery Supervisory salaries. Total actual overhead costs $ 18,200 28,950 5,850 3,745 19,000 11,600 19,300 $106,645 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.) Total actual overhead Flexible budget overhead Variable Fixed Total Overhead controllable variance Answer is not complete. Controllable variance $ $ 46,800 46,800 106,645 93,600 $ 57,682 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 Volume Variance Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs: Fixed overhead costs: Total overhead costs JAMES CORP. Overhead Variance Report For Month Ended May 31 Flexible Budget