Levelor Companys flexible budget shows 10790 of overhead at

Levelor Company\'s flexible budget shows $10,790 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.20 per direct labor hour based on a budgeted operating level of 6,200 direct labor hours (90% of capaclty), If overhead actually Incurred was $11.271 during May, the controllable varlance for the month was: O $481 unfavorable. O $481 favorable. O $2.850 favorable. O $2,850 unfavorable O $2,369 favorable.

Solution

A. $481 unfavorable

Flexible budget overhead (given)	$10,790
Actual overhead incurred (given)	$11,271
Total controllable variance	$481 U