Alapai 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 7,000 MHs Actual level of activity 7,200 MHs Standard variable manufacturing overhead rate $ 9.40 per MH Budgeted fixed manufacturing overhead cost $ 40,000 Actual total variable manufacturing overhead $ 66,960 Actual total fixed manufacturing overhead $ 37,000 What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month? Multiple Choice

$3,720 Favorable $2,280 Unfavorable $1,840 Favorable $1,880 Unfavorable