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Millonzi 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

Millonzi 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 5,600 MHs

Actual level of activity 5,400 MHs

Standard variable manufacturing overhead rate $8.70 per MH

Actual total variable manufacturing overhead $44,280

What was the variable overhead rate variance for the month?

$4,440 favorable

$1,740 favorable

$2,700 favorable

$1,640 unfavorable

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