Abbott has a standard variable overhead rate of $ 4.50 per machine hour, and each unit produced has a standard time allowed of three hours. The company's static budget was based on 46,000 units. Actual results for the year follow. Actual units produced Actual machine hours worked Actual variable overhead incurred 42,000 120,000 $ 528,000 Find Abbott's variable-overhead spending (Rate) variance. Choose one of the following five options and then show the step by step workings. Answers without correct workings will be treated as wrong answer and there is no negative mark for wrong answer for this question: (A) $ 12,000 Favorable (B) $27,000 Favorable (C) $ 12,000 Adverse (D) $27,000 Adverse (E) $ 39,000 Favorable