XYZ Manufacturing uses a standard cost system with overhead applied based on direct-labor hours. The manufacturing budget for the production of 5,000 units for a the month of June included 10,000 hours of direct labor at $20 per direct labor hour, and $6 per direct labor hour for variable overhead. During June, 4.500 units were produced, using 9.600 direct-labor hours, incurring $53,400 of variable overhead. The rate variance for June for variable overhead would be:
1) $4 200 favorable
2) $4200 unfavorable
3) $3,600 favorable
4) $3,600 unfavorable