43 Direct materials Direct labor Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.4 ounces 0.6 hours Standard Price or Rate $ 2.00 per ounce Standard Cost Per Unit $ 12.80 $ 11.00 per hour $ 6.60 Variable overhead 0.6 hours $ 4.00 per hour $ 2.40 The company reported the following results concerning this product in February Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate, Actual variable overhead rate 5,000 units 5,100 units 30,100 ounces 1,910 hours 32,500 ounces $ 22.90 per ounce $ 32.40 per hour $ 3.20 per hour 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 February is: