Required 2 Required 1 Required 3 Compute the overhead volume variance. Classify 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 Required 1 Required 3 Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) BLAZE CORP. Overhead Variance Report For Month Ended March 31 Expected production volume Production level achieved Volume variance Actual Results Controllable Variance Flexible Budget Variances Fav. / Unfav. Variable overhead costs: Fixed overhead costs: Total overhead costs Required 2 Required 3 Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 Compute the overhead controllable variance. Classify 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 Required 1 Required 2 Exercise 08-22 Overhead controllable and volume variances; overhead variance report LO P4 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 Overhead Budget Production in units 80% 8,000 32,000 Standard direct labor hours Budgeted overhe ad Variable overhead costs Indirect materials Indirect 1abor $10,000 16,000 Power 4,000 2,000 32,000 Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation-Machinery 12,000 20,000 2,400 Taxes and insurance Supervisory salaries 13,600 Total fixed costs 48,000 $80,000 Total overhead costs During March, the company operated at 90% capacity (9,000 units), and it incurred the following actual overhead costs. Overhead costs (actual) Indirect materials $10,000 16,000 Indirect 1 abor 4,500 3,000 Power Maintenance Rent of factory building Depreciation-Machinery Taxes and insurance 12,000 19,200 3,000 14,000 Supervisory salaries $81,700 Total actual overhead costs 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