Zero Company's standard factory overhead application rate is $3.90 per direct labor hour (DLH), calculated at 90% capacity = 700 standard DLHs. In December, the company operated at 80% of capacity, or 622 standard DLHs. Budgeted factory overhead at 80% of capacity is $3,070, of which $1,300 is fixed overhead. For December, the actual factory overhead cost incurred was $3,850 for 820 actual DLHs, of which $1,310 was for fixed factory overhead.

If Zero Company uses a two-way breakdown (decomposition) of the total overhead variance, what is the total factory overhead flexible-budget variance for December (to the nearest whole dollar)? (Do not round intermediate calculations.)

Multiple Choice N/Athis variance doesn't exist under a two-way breakdown of the total overhead variance. $355 favorable. $555 unfavorable. $780 unfavorable. $820 unfavorable.