Doogan Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		8.3	grams	$	2.90	per gram
Direct labor		0.4	hours	$	29.00	per hour
Variable overhead		0.4	hours	$	7.90	per hour

The company produced 6,100 units in January using 40,210 grams of direct material and 2,470 direct labor-hours. During the month, the company purchased 45,300 grams of the direct material at $2.60 per gram. The actual direct labor rate was $28.30 per hour and the actual variable overhead rate was $7.70 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 January is: