Gerhan Company's Flexible Budget for the Units Actually Manufactured in May

Multiple Choice

Gerhan Company's flexible budget for the units actually manufactured in May shows $15,640 of total factory overhead;this output level represents 70% of available capacity.During May the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH) ,based on a denominator volume level of 6,120 DLHs,which represents 90% of available capacity.The company spent 5,000 DLHs and incurred $16,500 of total factory overhead cost during May,including $6,800 for fixed factory overhead.
What is the factory overhead efficiency variance for May,under the assumption that the company uses a two-variance breakdown (decomposition) of the total overhead variance?

A) N/A-this variance does not exist under a two-variance breakdown of the total overead variance.
B) $180 unfavorable.
C) $300 favorable.
D) $480 unfavorable.
E) $680 unfavorable.