The Richie Company uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. Data for the month of October include the following:
	Variable manufacturing overhead cost incurred: $39,364
	Total variable manufacturing overhead variance: $5,350 favorable
	Standard machine setups allowed for actual production: 2,830 setups
	Actual machine setups incurred: 2,760 setups

The standard variable overhead rate per machine setup is:

$12.05

$15.80

$16.20

$14.26