Fabian Fabrication machines heavy-duty brake rotors that are used on commercial airliners. Fabian's management developed the following standard costs:

Standard direct labor hours per rotor ..................... 2.40

Standard overhead rate per direct labor hour ......... $11.25

Actual activity for October:

Actual overhead costs incurred ........................ $136,800

Actual direct labor hours .................................. 11,400

Actual rotors machined ..................................... 4,100

What is the total variable manufacturing overhead variance for October?

1. $26,100 unfavorable

2. $90,675 unfavorable

3. $26,100 favorable

4. $90,675 favorable