Grub Chemical Corporation has developed cost standards for the production of its new chocolate, Choco. The variable cost standards below relate to each 10 gallon batch of Choco: Milk chocolate (2 pounds $0.85 per pound) Direct labor (1.25 hours * $12.00 per hour) Variable overhead (1.25 hours * $44.00 per hour) Standard Cost Per Batch $ 1.70 $15.00 $55.00 Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual results for last month were as follows: Number of batches produced Direct labor-hours incurred Pounds of chocolate purchased Pounds of chocolate used in production Cost of chocolate purehased Direct labor cost Variable manufacturing overhead cost 3,800 4.510 9.000 7,880 $ 7,200 $ 53.218 $205,700 What is Choco's materials (milk chocolate price variance