Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:

	Standard Quantity			Standard Price or Rate			Standard Cost
Direct materials		6.20	pounds	$	1.00	per pound	$	6.20
Direct labor		0.50	hours	$	37.50	per hour	$	18.75
Variable manufacturing overhead		0.50	hours	$	8.90	per hour	$	4.45

During March, the following activity was recorded by the company:

• The company produced 2,800 units during the month.
• A total of 19,800 pounds of material were purchased at a cost of $13,980.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,020 pounds of material remained in the warehouse.
• During March, 1,130 direct labor-hours were worked at a rate of $34.50 per hour.
• Variable manufacturing overhead costs during March totaled $14,461.

The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for March is: