Levelor Company's flexible budget shows $10,800 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 6,210 direct labor hours (90% of capacity). If overhead actually incurred was $11,282 during May, the controllable variance for the month was: Multiple Choice $482 favorable. $1,620 unfavorable. $1,620 favorable. $1,138 favorable. $482 unfavorable