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 Standard Price or Standard Quantity Rate Cost per 7.10 pounds $ 0.90 $6.39 pound Direct materials $23.25 Direct labor 0.50hours per $ 46.50 hour Variable manufacturing per 0.50 hours $ 9.80 overhead hour During March, the following activity was recorded by the company: $ 4.90 The company produced 3700 units during the month. A total of 20,700 pounds of material were purchased at a cost of $14,880. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4920 pounds of material remained in the warehouse. During March, 1220 direct labor-hours were worked at a rate of $43.50 per hour. Variable manufacturing overhead costs during March totaled $15,361. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: $4037 F 0 $4037U 0 $3405 0 O $3405 F