Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 9.7 kilos $ 7.20 per kilo Direct labor 0.3 hours $ 32.00 per hour Variable overhead 0.3 hours $ 7.20 per hour The company reported the following results concerning this product in August. Actual output 4,400 units Raw materials used in production 30,230 kilos Purchases of raw materials 32,800 kilos Actual direct labor-hours 1,100 hours Actual cost of raw materials purchases $ 207,920 Actual direct labor cost $ 23,936 Actual variable overhead cost $ 8,740 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for August is: