HelpSave &Exit Handerson Corporation makes a product with the following standard costs Standard Quantity Standard Price or Direct materials Direct labor Variable overhead or Hours 8.5 kilos 0.4 hours 0.4 hours 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 s22,736 $ 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 variable overhead rate variance for August is: