Direct materials Direct labor Variable overhead Standard Quantity or Hours 8.9 kilos 0.4 hours 0.4 hours Standard Price or Rate $ 6.40 per kilo $24.00 per hour $ 6.40 per hour The company reported the following results concerning this product in August. Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 3,600 units 29,430 kilos 32,000 kilos 1,100 hours $199,920 $ 23,136 $ 7,940 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: Multiple Choice $1,178 F O O $900 U $1,178 U O O $900 F