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 Total 0 Overhead controllable variance \fJames Corp. applies overhead on the basis of direct labor hours. :or 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: DEratin Levels Overhead Budget 88% Production in units 18,808 Standard direct labor hours 38,808 Budgeted overhead Variable overhead costs Indirect materials 5 21,808 Indirect labor 38,808 Power 6,808 Maintenance 3,808 Total variable costs 68,808 Fixed overhead costs Rent of factoryr building 14,808 DepreciationW'Iachineryr 11,108 Supervisory salaries 28,908 Total fixed costs 54,808 Total overhead costs 5114;333 During May, the company operated at 90% capacity {11,250 units} and incurred the following actual overhead costs: Overhead costs (actual) Indirect materials 5 21,808 Indirect labor 33,308 Power 6,?50 Maintenance 4,825 Rent of factory' building 14,808 DepreciationMachinery 11,108 Supervisory salaries 32,608 Total actual overhead costs $122,?75 1. Compute the overhead controllable variance and classify it as favorable or unfavorable. 1 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. 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