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For May, Mariana company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget. The company applies overhead with a standard of 2 DLH per unit and a standard overhead rate of $4 per DLH. 80% Operating Level 8,000 Overhead Budget Production (in units) Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead $ 16,000 20,000 5,000 3,000 44,000 16,000 10,100 14,900 41,000 $ 85,000 It actually operated at 90% capacity (9,000 units) in May and incurred the following actual overhead. Actual Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of building Depreciation-Machinery Supervisory salaries Actual total overhead $ 16,000 22, 200 5,625 3,975 16,000 10,100 17,600 $ 91,500 1. Compute the overhead controllable variance and identify it as favorable or unfavorable. 2. Compute the overhead volume variance and identify 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 identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Controllable variance Actual total overhead Budgeted (flexible) overhead Variable overhead Fixed overhead 0 Controllable variance Required: Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance and identify it as favorable or unfavorable. (Indicate the effect of the selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Volume Variance Volume variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) MARIANA COMPANY Overhead Variance Report For Month Ended May 31 Expe Actual Volume variance Controllable Variance Variable overhead costs Flexible Budget Actual Results Variances Favorable/Unfavorable Fixed overhead costs: Flexible Budget Actual Results Variances Favorable/Unfavorable Controllable Variance Variable overhead costs: Fixed overhead costs: Total overhead costs Volume Variance Volume variance Total overhead variance