Beacon Company manufactures various types of plastic and rubber coated tubing products for various industries. Standard cost accounting system is used.The following are available:

Actual total overhead

$44,000

Budgeted fixed costs

$12,600

Total overhead application rate per standard direct labor hour

$2.50

Actual hours used

16,000

Standard hours allowed

17,000

Normal activity in hours

14,000

The company uses a two-way analysis of overhead variances.

The controllable variance of Beacon Company is

Choices:

$1,500 favorable

$1,500 unfavorable

$4,200 unfavorable

$4,200 favorable