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 $10.00 per MH. During the month, the actual total variable manufacturing overhead was $49,680 and the actual level of activity for the period was 5,400 MHs. What was the variable overhead rate variance for the month?

$432 Favorable

$432 Unfavorable

$4,320 Unfavorable

$4,320 Favorable