Xero Company's Standard Factory Overhead Rate Is $3

Multiple Choice

Xero Company's standard factory overhead rate is $3.75 per direct labor hour (DLH) ,calculated at 90% capacity = 900 standard DLHs.In December,the company operated at 80% of capacity,or 800 standard DLHs.Budgeted factory overhead at 80% of capacity is $3,150,of which $1,350 is fixed overhead.For December,the actual factory overhead cost was $3,800 for 840 actual DLHs,of which $1,300 was for fixed factory overhead.If the company uses a two-way breakdown (decomposition) of the total overhead variance,what is the total factory overhead flexible-budget variance for December?

A) N/A-this variance doesn't exist under a two-way breakdown of the total overhead variance.
B) $225 favorable.
C) $425 unfavorable.
D) $650 unfavorable.
E) $690 unfavorable.