The correct answer is D. $534,900 favorable
Explaination:
Standard Variable Cost = 17450 units * 5 hours * $8.40 per unit = $ 732,900
Actual Variable Cost = $ 198,000
Variance = Standard Variable Cost - Actual Variable Cost\
Variance = $ 732,900 - $ 198,000 = $ 534,900 (Favourable)
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