Doogan Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or Rate Direct materials 9.0grams$3.60per gram Direct labor 0.4hours$36.00per hour Variable overhead 0.4hours$8.60per hour The company produced 6,800 units in January using 40,910 grams of direct material and 2,540 direct labor-hours. During the month, the company purchased 46,000 grams of the direct material at $3.30 per gram. The actual direct labor rate was $35.30 per hour and the actual variable overhead rate was $8.40 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for January is: Multiple Choice $508 U $544 F $508 F $544 U
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