Problem 3 Multan Inc. uses standard costing and has the following overhead information for the current period. Variable manufacturing overhead is applied based on direct labor hours Actual manufacturing overhead incurred: Variable 82,400 $ Fixed 298,470 $ Budgeted manufacturing fixed overhead 305,000 $ Variable manufacturing overhead rate 7.43 $/h Budgeted direct labor hours 25,600 h Standard direct labor hours per unit 1.55 h/up Expected production 6,800 up Actual production 6,823 up REQUIRED: Calculate the total variable manufacturing overhead variance and indicate whether it is favorable or unfavorable