Levelor Company's flexible budget shows $10,810 of overhead at 75% of capacity, which was the...
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| Levelor Company's flexible budget shows $10,810 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 $2.10 per direct labor hour based on a budgeted operating level of 6,220 direct labor hours (90% of capacity). If overhead actually incurred was $11,293 during May, the controllable variance for the month was: |
$483 favorable.
$1,769 favorable.
$483 unfavorable.
$2,252 unfavorable.
$2,252 favorable.
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