Ortman Corporation makes a product with the following standard costs Standard Quantity or Hours Standard Price or Rate $13.00 per liter $28.00 per hour $1.00 per hour Direct materials Direct labor Variable overhead 7.8 liters 1.2 hours 1.2 hours The company reported the following results concerning this product in May Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate 2,800 units 21,560 liters 3,235 hours 23,630 liters $ 8.00 per liter $26.90 per hour $0.80 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 May is: O $650 F O $650 U O $647 F O $647 U