During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs:

During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs:

Overhead CostsIndirect materials$16,000 Indirect labor 27,675 Power 6,750 Maintenance 4,210 Rent of factory building 13,000 Depreciation—Machinery 11,900 Supervisory salaries 18,500 Total actual overhead costs$98,035 

1. Compute the overhead controllable variance.

2. Compute the overhead volume variance.

3. Prepare an overhead variance report at the actual activity level of 11,250 units.

Prepare an overhead variance report at the actual activity level of 11,250 units. Classify as favorable or unfavorable. (Do not round intermediate calculations.)

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