A company's flexible budget for the range of 40,000 units to 50,000 units of production showed variable overhead costs of $2 per unit and fixed overhead costs of $81,000. The company incurred total overhead costs of $167,400 while operating at a volume of 45,000 units. The total controllable cost variance is:

Multiple Choice

• $6,400 favorable.

• $6,400 unfavorable.

• $3,600 favorable.

• $3,600 unfavorable.

• $10,000 favorable.