Handerson Corporation makes a product with the following standard costs: Help Save & Exit Direct materials Direct labor Variable overhead Standard Quantity or Hours 8.8 kilos 0.5 hours 0.5 hours Standard Price or Rate $ 6.30 per kilo $ 23.00 per hour $ 6.30 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 3,500 units 29,330 kilos 31,900 kilos 1,190 hours $ 198,920 $ 23,036 $ 7,840 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 O $343 Favorable O $343 Unfavorable O $504 Unfavorable $504 Favorable