Levelor Company's Flexible Budget Shows $10,710 of Overhead at 75

Multiple Choice

Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity,which was the operating level achieved during May.However,the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity) .If overhead actually incurred was $11,183 during May,the controllable variance for the month was:

A) $473 unfavorable.
B) $473 favorable.
C) $1,530 favorable.
D) $1,530 unfavorable.
E) $1,057 favorable.