Use This Information to Answer the Questions That Follow

Multiple Choice

Use this information to answer the questions that follow.
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The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows:
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-What is the variable factory overhead controllable variance?

A) $10,000 favorable
B) $2,500 unfavorable
C) $10,000 unfavorable
D) $2,500 favorable