select: margin is outside of toolbar

[epelc]

Actual behavior:

• What is the issue? * The margin goes outside the toolbar
• What is the expected behavior? It should be inside. This also may partially cause md-select: Header is outside of toolbar when selected #8412

CodePen or Steps to reproduce the issue: *

• CodePen Demo which shows your issue : Look at any demo page on docs with directive select
• Details: https://material.angularjs.org/latest/demo/select
  

Angular Versions: *

• Angular Version: I also tested locally 1.5.6
• Angular Material Version: 1.0.9

Additional Information:

• Browser Type: * chrome
• Browser Version: * 51.0.2704.84 (64-bit)
• OS: * os x 10.11.5
• Stack Traces:

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[clshortfuse]

#8716 has new layout for md-select which does away with some of the previous margins. I believe it would fix the problem.