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 7.20 pounds $ 1.00 per pound $ 7.20 Direct labor 0.40 hours $ 47.50 per hour $ 19.00 Variable manufacturing overhead 0.40 hours $ 9.90 per hour $ 3.96 During March, the following activity was recorded by the company: The company produced 3,800 units during the month. A total of 20,800 pounds of material were purchased at a cost of $14,980. There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,020 pounds of material remained in the warehouse. During March, 1,230 direct labor-hours were worked at a rate of $44.50 per hour. Variable manufacturing overhead costs during March totaled $15,461. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: