Handerson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 8.7 kilos 0.6 hours 0.6 hours Standard Price or Rate $ 6.20 per kilo $22.00 per hour $ 6.20 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 3,400 units 29, 230 kilos 31,800 kilos 1,180 hours $ 197,920 $ 22,936 $ 7,740 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