MC Qu. 99 Levelor Company's flexible budget shows.. Levelor Company's flexible budget shows $10,610 of overhead at 75% of capacity, which was the operating level achleved during May. However, the company appled overhead to production during May at a rate of $2.20 per direct labor hour based on a budgeted operating level of 6,020 direct labor hours (90% of capaclty). If overhead actually Incurred was $11,073 during May, the controllable variance for the month was: O $463 unfavorable. O $463 favorable. O $2,634 favorable. O $2.634 unfavorable. $2.171 favorable. * $2171 favor a