Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours 8.5 kilos 0.4 hours 0.4 hours Direct materials Direct labor Variable overhead Standard Price or Rate $ 6.00 per kilo $20.00 per hour $ 6.00 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 3,200 units 29,030 kilos 31,600 kilos 1,160 hours $195,920 $ 22,736 $ 7,540 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 materials price variance for August is: Multiple Choice 0 $5,440 u 0 O $6,320 U 0 $6,320 F 0 $5,440 F