Xcel Technologies, Inc. applies variable manufacturing overhead to products based on machine hours. The standard variable overhead rate is $5 per machine hour. The standard time allowed for producing one unit is 2 machine hours. During the month of August, the company produced 500 units. It incurred actual variable costs of $5,655 and used 870 machine hours. Calculate the variable overhead rate variance for the month of August.

A) $1,500 unfavorable

B) $1,305 favorable

C) $1,500 favorable

D) $1,305 unfavorable