Levelor Company's flexible budget shows $10,640 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.20 per direct labor hour based on a budgeted operating level of 6,050 direct labor hours (90% of capacity). If overhead actually incurred was $11,106 during May, the controllable variance for the month was: Multiple Choice 0 $2,204 favorable. 0 $2,670 unfavorable. 0 $2,670 favorable. 0 $466 favorable. $466 unfavorable