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Levelor Company's flexible budget shows $10,770 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead
Levelor Company's flexible budget shows $10,770 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 6,180 direct labor hours (90% of capacity). If overhead actually incurred was $11,249 during May, the controllable variance for the month was:
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