3. Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:

Budgeted level of activity	9,800	MHs
Actual level of activity	9,900	MHs
Standard variable manufacturing overhead rate	$ 7.00	per MH
Budgeted fixed manufacturing overhead cost	$ 63,000
Actual total variable manufacturing overhead	$ 64,600
Actual total fixed manufacturing overhead	$ 68,300

What was the fixed manufacturing overhead budget variance for the month?

Multiple Choice

• a. $5,300 Unfavorable

• b. $700 Favorable

• c. $5,300 Favorable

• d. $700 Unfavorable