g Ortman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 7.0 liters $5.00 per liter Direct labor 1.4 hours $20.00 per hour Variable overhead 1.4 hours $2.00 per hour The company reported the following results concerning this product in May: Actual output 2,000 units Raw materials used in production 13,800 liters Actual direct labor-hours 2,715 hours Purchases of raw materials 15,430 liters Actual price of raw materials purchased $ 7.20 per liter Actual direct labor rate $19.10 per hour Actual variable overhead rate $1.40 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 May is: