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Fogel Co$.$ expects to produce $125,000$ units for the year. The company's flexible budget for $125,000$ units of production shows variable overhead costs of $$175,000$ and fixed overhead costs of $$125,000.$ For the year, the company incurred actual overhead costs of $$257,800$ while producing $118,000$ units.

Compute the controllable overhead variance and classify it as favorable or unfavorable. $($Round cost per unit to $2$ decimal places.$)$

$\backslash$table$[[,$Flexible Budget$--,----$Flexible Budget at $---],[,\backslash$table$[[$Variable$],[$Amount per$],[$Unit$]],\backslash$table$[[$Total Fixed$],[$Cost$]],125,000$ units,$118,000$ units$],[$Variable cost$,,,$$$,175,000,],[$Fixed costs,,,,$125,000,],[$Total flexible budget,,,,$300,000,],[$Controllable Overhead Variance,$-],[$Total actual overhead cost,I,$],[$Total flexible budget amount$],[$Controllable overhead variance,,$]]$A company uses activity$-$based costing to determine the costs of its three products: $A,B,$ and C $.$ The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:

$01$:$26$:$56$

$\backslash$table$[[,,$Budgeted Activity$],[$Activity Cost,Budgeted,Product A Product B$,$Product C$,],[$Pool$,$Cost,,,$],[$Activity $1,$$$75,000,6,500,9,500,20,500],[$Activity $2,$$$50,000,7,500,15,500,8,500],[$Activity $3,$$$92,000,3,000,1,500,2,125]]$

Which of the following statements is true regarding this company's activity rates?

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