Microsoft Inc. has large overheads in their headquarters at Seattle. Microsoft applies overhead based on direct labor hours. The variable overhead standard is 5 hours at $5.50 per hour. During October, Microsoft Company spent $371,800 for variable overhead. 69,440 labor hours were used to produce 14,200 units. What is the variable overhead rate variance for Microsoft? Multiple Choice $10,120 favorable $8,580 favorable Oo oo $18,700 favorable $8,580 unfavorable