QUESTION 2 The following data have been provided by Mathews Corporation: Budgeted production Standard machine-hours per unit 9.4 machine-hours Standard lubricants rate $1.20 per machine-hour Standard supplies rate $1.00 per machine-hour Actual production 7,000 units Actual machine-hours (total) 66,230 machine-hours Actual lubricants cost (total) $78,100 Actual supplies cost (total) $66,536 Lubricants and supplies are both elements of variable manufacturing overhead. 6,900 units The variable overhead rate variance for supplies is closest to: $736 U $430 U $306 U $736 F