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2,650 favorable

Explanation:

manufacturing variable overhead variance:

standard rate x actual cost driver - actual cost

$7.90 per machine hours x 9,400 Machine Hours - $71,610 actual cost

74,260 - 71,610 =  2,650 variance

The variance is favorable, as the actual cost were below standard.

It is important to identify the cost driver on which the rate is expressed. For this assignment we are given just one expression of machine hours. But, on a complete assignment we will be working with materials, direct labor cost, direct labor hours and other, we need to check what is the base for overhead.