Spencer Manufacturing 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: What was the variable overhead rate variance for the month?

Select one:

a. $1,500 Favorable

b. $590 Unfavorable

c. $910 Favorable

d. $1,000 Unfavorable

Budgeted level of activity Actual level of activity Standard variable manufacturing overhead rate Actual total variable manufacturing overhead. 7,400 MHs 7,500 MHs $5.90 per MH $42,750