Kellar Corporation manufactured 1,500 chairs during June. The following variable overhead data pertain to June:

Budgeted variable overhead cost per unit	$12.00
Actual variable manufacturing overhead cost	$16,800

Flexible-budget amount for variable manufacturing overhead	$18,000
Variable manufacturing overhead efficiency variance	$360 unfavourable

Which one of the following amounts is the variable overhead rate variance?

A.

$1,200 favourable

B.

$1,560 favourable

C.

$1,200 unfavourable

D.

$1,560 unfavourable