Epley Corporation makes a product with the following standard costs: In July the company produced 3.320 units using 13.280 pounds of the direct material and 2.776 direct labor-hours. During the month, the company purchased 14.040 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $57.895 and the actual variable overhead cost was $25,260. 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 labor rate variance for July is: $2,119 U $401 U $2,119 F $401 F