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Blaze Corp, applies overhead on the basis of direct labor hours. For the month of March, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following 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 Taxes and insurance Supervisory salaries Total fixed costs Total overhead costs $11,200 16,400 5,800 2.600 36,000 14,000 20. 200 2.100 14.700 51,000 $87,000 During March, the company operated at 90% capacity (9,000 units), and it incurred the following actual overhead costs. Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of factory building Depreciation Machinery Taxes and insurance Supervisory salaries $11,200 16,400 6,525 3.695 14,000 19,450 2,800 15,800 During March, the company operated at 90% capacity (9,000 units), and it incurred the following actual overhead costs Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of factory building Depreciation Machinery Taxes and insurance Supervisory salaries Total actual overhead costs $11,200 16,400 6, 525 3,695 14,000 19,450 2,800 15,800 $89,870 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance, 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. Compute the overhead controllable variance. Classify as favorable or unfavorable. (Do not rounai Controllable Variance Total actual overhead Flexible budget overhead Total Overhead controllable variance Required 2 > Complete Lis quesLIUIL DY ellery Yuui omawCremo v er Required 1 Required 2 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Do Volume Variance Volume variance BLAZE CORP. Overhead Variance Report For Month Ended March 31 Expected production volume Production level achieved Volume variance Controllable Variance Flexible Budget Actual Results Variances Fav. / Unfav. Variable overhead costs: Fixed overhead costs: Total overhead costs |