The following information relating to a company's overhead costs is available.

Actual total variable overhead

Actual total fixed overhead

Budgeted variable overhead rate per machine hour

Budgeted total fixed overhead

Budgeted machine hours allowed for actual output

$$91,000$

$$20,000$

$$2\mathrm{.}50$

$$18,000$

$38,000$

Based on this information, the total variable overhead variance is:

Multiple Choice

$$4,000$ favorable.

$$7,200$ favorable.

$$4,000$ unfovorable.

$$7,200$ unfavorable.

$$1,895$ favorable