The following information is available for the Danske Company:

Denominator hours for May		21,500
Actual hours worked during May		19,200
Standard hours allowed for May		14,600
Flexible budget fixed overhead cost	$	64,500
Actual fixed overhead costs for May	$	68,800

Danske Company had total underapplied overhead of $21,500. Additional information is as follows:

Variable Overhead:
Applied based on standard direct labor hours allowed	$	55,000
Budgeted based on standard direct labor hours		44,500
Fixed Overhead:
Applied based on standard direct labor hours allowed	$	43,000
Budgeted based on standard direct labor hours		33,500

What is the fixed overhead price (spending) variance for May?

Multiple Choice

• $2,300 unfavorable

• $4,600 unfavorable

• $4,600 favorable

• $4,300 unfavorable