Levelor Company's flexible budget shows $10,750 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 6,160 direct labor hours (90% of capacity).
If overhead actually incurred was $11,227 during May, the controllable variance for the month was:
a) $472 unfavorable.
b) $472 favorable.
c) $2, 742 favorable.
d) $2, 742 unfavorable.
e) $2, 270 favorable.

A.j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a.j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a.j. could have probably handled. a.j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a.j. was recognizing the culture at idle time gaming.