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Problem - 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 $8.00 per MH. During the month, the actual total variable manufacturing overhead was $48,840 and the actual level of activity for the period was 6,600 MHs. What was the variable overhead rate variance for the month?

$495 Favorable

$495 Unfavorable

$3,960 Unfavorable

$3,960 Favorable

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