3 Chapters 9 & 10 Help Save & Exit Doogan Corporation makes a product with the following standard costs: Standard Price or Standard Quantity or Hours 7.7 grams 0.5 hours 0.5 hours Rate Direct materials Direct labor Variable overhead $ 2.30 per gram $23.00 per hour $ 7.30 per hour The company produced 5,500 units in January using 39,610 grams of direct material and 2.410 direct labor hours. During the month, the company purchased 44700 grams of the direct material at $2.00 per gram. The actual direct labor rate was $22.30 per hour and the actual variable overhead rate was $710 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 Een Multiple Choice o $550 F o 0 $482 U o $550 U $5500 o $482