Miguez Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		3.2	liters	$	7.90	per liter	$	25.28
Direct labor		0.4	hours	$	31.00	per hour	$	12.40
Variable overhead		0.4	hours	$	2.90	per hour	$	1.16

The company budgeted for production of 3,500 units in September, but actual production was 3,400 units. The company used 6,340 liters of direct material and 1,770 direct labor-hours to produce this output. The company purchased 6,700 liters of the direct material at $8.10 per liter. The actual direct labor rate was $33.10 per hour and the actual variable overhead rate was $2.70 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 variable overhead rate variance for September is: