Nora, Inc. manufactures components used by a major cell phone manufacturer. During the year, Nora produced 160,000 components and used 40,500 direct labor hours. Nora based its current year budget on a production level of 150,000 components each of which requires 15 minutes of direct labor time. Total budgeted variable overhead for the year was $131,250. Actual variable overhead for the year was $145,800. What is Nora's flexible budget variable overhead variance?
◦ $5,800 unfavorable
◦ $4,050 favorable
◦ $4,050 unfavorable
◦ $5,800 favorable