Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data:

Budgeted output	30,000 units
Budgeted machine-hours	60,000 hours
Budgeted variable manufacturing overhead costs for 30,000 units	$480,000
Actual output produced	29,000 units
Actual machine-hours used	55,000 hours
Actual variable manufacturing overhead costs	$436,500

What is the variable overhead rate variance?

		$24,000 unfavourable
		$24,000 favourable
		$3,500 favourable
		$3,500 unfavourable