Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs products

Direct materials: 10 pounds $3 per pound

Direct labor: 2.5 hours $7.50 per hour

Variable manufacturing overhead: 2.5 hours $2 per hour

The following activity occurred during the month of June:

Materials purchased: 125,000 pounds at $2.60 per pound

Materials used: 110,000 pounds

Units produced: 10,000 units

Direct labor: 24,000 hours at $8.00 per hour

Actual variable manufacturing overhead: $51,000

The company records materials price variances at the time of purchase.

The direct labor rate variance is: