Diamond Company produces a single product. The company has set the following standards for materials and labor: During the past month, the company purchased 7,000 pounds of direct materials at a cost of $17,500. All of this material was used in the production of 1,300 units of product. Direct labor cost totaled $36,750 for the month. The following variances have been computed: Materials quantity variance...... $1,375 U Total materials variance......... $375 F Labor efficiency variance........ $4,000 F Required: Compute the labor rate variance.

Diamond Company produces a single product. The company has set the following standards for materials and labor:During the past month, the company purchased 7,000 pounds of direct materials at a cost of $17,500. All of this material was used in the production of 1,300 units of product. Direct labor cost totaled $36,750 for the month. The following variances have been computed: Materials quantity variance...... $1,375 U Total materials variance......... $375 F Labor efficiency variance........ $4,000 F Required: Compute the labor rate variance