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Bat Company's flexible budget for the units manufactured in May shows $15,770 of total factory overhead; this output level represents 70% of available capacity. During
Bat Company's flexible budget for the units manufactured in May shows $15,770 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 6,000 DLHs and incurred $18,600 of total factory overhead cost during May, including $7,900 for fixed factory overhead. What is the fixed factory overhead spending variance to the nearest whole dollar) in May for Bat Company? (Round your intermediate calculations to 2 decimal places; Round your final answer to zero decimal places.) Multiple Choice $968 unfavorable. $788 favorable. $668 unfavorable $0 $1,168 unfavorable
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