dditional Problems- Required Help Save & Exit Subn Check my worlk Exercise 8-21 Overhead controllable and volume variances; overhead variance report LO P3 James Corp. applies overhead on the basis of direct labor hours. For 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 rating Levels overhead Budget Production in units Standard direct labor hours Budgeted overhead 80% 10,000 20,000 Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs $12,000 20,000 5,000 3,000 40,000 Pixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total fixed costs 19,000 10,400 14,600 44,000 $84,000 Total overhead costs During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs. Overhead Costs Indirect materials Indirect labor Power Maintenance $12,000 22,200 5, 625 3,990