Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $5.00 per MH. During the month, the actual total variable manufacturing overhead was $22,540 and the actual level of activity for the period was 4,600 MHs. What was the variable overhead rate variance for the month?

Which is correct?

$92 Favorable

$92 Unfavorable

$460 Unfavorable

$460 Favorable