Clover Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine hours. The following data pertain to one month's operations:

Correct answer is $4000 favorable. Show me all calculations on how to get to $4000 and explain to me why it is favorable.

Clover Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine hours. The following data pertain to one month's operations: Standard machine hours allowed for actual production: 3,550 MH 4,000 MH Actual machine hours for the month: Actual variable manufacturing overhead costs incurred: $ 80,000 Variable overhead spending variance: S 5,450 Unfavorable 9 What is variable overhead rate variance? A. S 9,450.00 unfavorable B. S9,450.00 favorable C. 4,000.00 unfavorable D. 4,000.00 favorable E. Not determinable