Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. The following data pertain to one month's operations:

• Variable manufacturing overhead cost incurred: $70,000
• Total variable manufacturing overhead variance: $4,550 Favorable
• Standard machine setups allowed for actual production: 3,550
• Actual machine setups incurred: 3,500

The standard variable overhead rate per machine setup is:

Multiple Choice

• $18.44

• $21.30

• $21.00

• $20.00