Handerson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		9.0	kilos	$	6.50	per kilo
Direct labor		0.5	hours	$	25.00	per hour
Variable overhead		0.5	hours	$	6.50	per hour

The company reported the following results concerning this product in August.

Actual output		3,700	units
Raw materials used in production		29,530	kilos
Purchases of raw materials		32,100	kilos
Actual direct labor-hours		1,110	hours
Actual cost of raw materials purchases	$	200,920
Actual direct labor cost	$	23,236
Actual variable overhead cost	$	8,040

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: