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 $4.20 per hour. During October, Microsoft Company spent $176,800 for variable overhead, 42,940 labor hours were used to produce 9.900 units. What is the variable overhead rate variance for Microsoft? o $3.548 favorable o $27,552 favorable o $31,100 favorable o $27.552 unfavorable