TB MC Qu. 11-37 Sholette Manufacturing Corporation has...

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 $7.00 per MH. During the month, the actual total variable manufacturing overhead was $42,250 and the actual level of activity for the period was 6,500 MHs. What was the variable overhead rate variance for the month?

$464 Favorable

$464 Unfavorable

$3,250 Unfavorable

$3,250 Favorable