HermeticSystems allocates manufacturing overhead based on machine hours. Each connector should require 13machine hours. According to the staticbudget,Hermeticexpected to incur thefollowing:

1,300 machine hours per month (100 connectors x 13 machine hours per connector)

$6,500 in variable manufacturing overhead costs

$9450 in fixed manufacturing costs

DuringAugust, Hermetic actually used 800 machine hours to make 85 connectors and spent $5,200 in variable manufacturing $8,800 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance forHermetic.

A. $2,725 Favorable

B. $325 Favorable

C. $1,525 Favorable

D. $1,200 Unfavorable