Puvo, Incorporated, 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	6.2	pounds	$ 1.00	per pound	$ 6.20
Direct labor	0.5	hours	$ 37.50	per hour	$ 18.75
Variable manufacturing overhead	0.5	hours	$ 8.90	per hour	$ 4.45

During March, the following activity was recorded by the company:

The company produced 2,800 units during the month.

A total of 19,800 pounds of material were purchased at a cost of $13,980.

There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,020 pounds of material remained in the warehouse.

During March, 1,130 direct labor-hours were worked at a rate of $34.50 per hour.

Variable manufacturing overhead costs during March totaled $14,461.

The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for March is: