Nora, IncManufactures Components Used by a Major Cell Phone Manufacturer

Multiple Choice

Nora, Inc.manufactures components used by a major cell phone manufacturer.During the year, Nora produced 160,000 components and used 40,500 direct labor hours.Nora based its current year budget on a production level of 150,000 components each of which requires 15 minutes of direct labor time.Total budgeted variable overhead for the year was $131,250.Actual variable overhead for the year was $145,800.What is Nora's flexible budget variable overhead variance?

A) $5,800 favorable
B) $5,800 unfavorable
C) $4,050 unfavorable
D) $4,050 favorable