Ch. 8 - John Deere Corporation manufactured 130,000 units during the month of April. Variable overhead is allocated using a pre-determined overhead rate of $5.30 per machine-hour. The following variable overhead data pertain to April:

Actual

Budgeted

Production

130,000 units

130,000 units

Machine-hours

9,500 hours

9,000 hours

Variable overhead cost per machine-hour

$5.35

$5.30

What is the variable overhead price/rate variance?