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Spring Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.30

Spring Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.30 per MH. The company had budgeted its fixed manufacturing overhead cost at $75,000 for the month. During the month, the actual total variable manufacturing overhead was $66,800 and the actual total fixed manufacturing overhead was $81,000. The actual level of activity for the period was 7,000 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

$7,700 unfavorable
$7,700 favorable
$1,700 unfavorable
$1,700 favorable

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