Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours 2.0 ounces 0.8 hours 0.8 hours Direct materials Direct labor Variable overhead Standard Cost Per Unit $ 8.00 $ 8.00 $ 2.00 Standard Price or Rate $ 4.00 per ounce $ 10.00 per hour $ 2.50 per hour The company reported the following results concerning this product in February. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 4,800 units 4,600 units 7,200 ounces 3,880 hours 8,800 ounces $ 3.90 per ounce $ 12.00 per hour $ 3.50 per hour 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 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 February is: Multiple Choice $8,7200 $8,720