Puvo, 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 Cost $ 9.24 $16.60 3.72 Standard Price Standard Quantity 6.60 pounds 0.40 hours 0.40 hours or Rate $ 1.40 per pound $41.50 per hour $ 9.30 per hour Direct materials Direct labor Variable manufacturing overhead During March, the following activity was recorded by the company: The company produced 3,200 units during the month. . A total of 20,200 pounds of material were purchased at a cost of $14,380. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,420 pounds of material remained in the war During March, 1170 direct labor-hours were worked at a rate of $38.50 per hour . Variable manufacturing overhead costs during March totaled $14,861. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Multiple Choice $4,375 F $4.375 U O $3.9800 $3,980 F