Levelor Company's flexible budget shows $10,710 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 $2.00 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity). If overhead actually incurred was $11,183 during May, the controllable variance for the month was:

Multiple Choice

• $1,057 favorable.

• $1,530 unfavorable.

• $1,530 favorable.

• $473 unfavorable.

• $473 favorable.