The following data is given for the Bahia Company:

Budgeted production	1,073 units
Actual production	917 units
Materials:
Standard price per pound	$1.76
Standard pounds per completed unit	10
Actual pounds purchased and used in production	8,895
Actual price paid for materials	$18,235
Labor:
Standard hourly labor rate	$14.36 per hour
Standard hours allowed per completed unit	4.4
Actual labor hours worked	4,722.55
Actual total labor costs	$72,019
Overhead:
Actual and budgeted fixed overhead	$1,199,000
Standard variable overhead rate	$26.00 per standard labor hour
Actual variable overhead costs	$132,231
Overhead is applied on standard labor hours.

The variable factory overhead controllable variance is

a.$174,318.73 unfavorable

b.$174,318.73 favorable

c.$27,326.20 unfavorable

d.$27,326.20 favorable