Bluecap Company uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2021:

Denominator volumenumber of units	7,000
Denominator volumepercent of capacity	70%
Denominator volumestandard direct labor hours (DLHs)	21,000
Budgeted variable factory overhead cost at denominator volume	$ 102,500
Total standard factory overhead rate per DLH	$ 15.10

During 2021, Bluecap worked 27,000 DLHs and manufactured 9,600 units. The actual factory overhead cost for the year was $13,000 greater than the flexible budget amount for the units produced, of which $7,000 was due to fixed factory overhead. In preparing a budget for 2022 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be "practical capacity"), to manufacture 9,000 units at a budgeted total of 27,000 DLHs.

The variable overhead spending variance in 2021 for Bluecap Company was: (Round your intermediate calculation to 2 decimal places.) PLEASE SHOW ALL STEPS AND WORK

Multiple Choice

A. $14,784 unfavorable.

B. $21,784 unfavorable.

C. $7,000 unfavorable.

D. $11,344 unfavorable.

E. $12,544 favorable.