A firm applies variable overhead with a standard rate of $20 per direct labor hour (assume there is no fixed overhead for this problem). The firm's static budget predicted 95,000 finished goods units (and the standard is for 2 direct labor hours to be used per finished good unit). This period's actual finished goods units were 97,000.

The firm's actual direct labor hours were 150,000, and actual total variable overhead costs were $3,600,000.

What is the firm's variable overhead price variance (round final answer to nearest cent if necessary)?

Group of answer choices

$600,000 unfavorable

$600,000 favorable

$880,000 unfavorable

$880,000 favorable