Sholette Manufacturing Corporation Has a Standard Cost System in Which

Multiple Choice

Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $5.00 per MH. During the month, the actual total variable manufacturing overhead was $22,540 and the actual level of activity for the period was 4,600 MHs. What was the variable overhead rate variance for the month?

A) $92 Favorable
B) $92 Unfavorable
C) $460 Unfavorable
D) $460 Favorable