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 Quantity Standard Price or Rate Standard Cost Direct materials 6.80 pounds $ 0.60 per pound $ 4.08 Direct labor 0.50 hours $ 43.50 per hour $ 21.75 Variable manufacturing overhead 0.50 hours $ 9.50 per hour $ 4.75 During March, the following activity was recorded by the company: The company produced 3,400 units during the month. A total of 20,400 pounds of material were purchased at a cost of $14,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,620 pounds of material remained in the warehouse. During March, 1,190 direct labor-hours were worked at a rate of $40.50 per hour. Variable manufacturing overhead costs during March totaled $15,061. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: