Insight Company's standard factory overhead rate is $3.73 per direct labor hour (DLH), calculated at 90% capacity = 700 standard DLHs. In December, the company operated at 80% of capacity, or 622 standard DLHs. Budgeted factory overhead at 80% of capacity is $3,060, of which $1,380 is fixed overhead. For December, the actual factory overhead cost was $4,410 for 870 actual DLHs, of which $1,330 was for fixed factory overhead.

Under a four-way breakdown (decomposition) of the total overhead variance, what is the variable factory overhead spending variance for Insight Company for December? (Round your intermediate calculation to 2 decimal places.)

Multiple Choice

$171 favorable

$346 favorable

$546 unfavorable

$771 unfavorable

$731 unfavorable