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.Under a three-variance breakdown (decomposition) of the total overhead variance,what is the total factory overhead spending variance for May?

A) N/A-this variance does not exist in a three-variance analysis of the total overhead variance.
B) $300 favorable.
C) $380 unfavorable.
D) $480 unfavorable.
E) $1,160 unfavorable.