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: $38,934

Total variable manufacturing overhead variance: $5,340 favorable

Standard machine setups allowed for actual production: 2,820 setups

Actual machine setups incurred: 2,750 setups

The standard variable overhead rate per machine setup is:

A. $15.70

B. $16.10

C. $11.95

D. $14.16