Sommers Fabrication Corporation has a standard cost system in which it applies variable manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.70 per MH. The company budgeted its fixed manufacturing overhead cost at $67,000 for the month. During the month, the actual total variable manufacturing overhead was $66,660 and the actual total fixed manufacturing overhead was $70,000. The actual level of activity for the period was 6,600 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month? (Do not round intermediate calculations.)

rev: 01_07_2014_QC_43147

a. $5,640 favorable

b. $2,640 favorable

c. $2,640 unfavorable

d. $5,640 unfavorable