Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	9.5 pounds	$9.0 per pound
Direct labor	0.8 hours	$31.00 per hour
Variable overhead	0.8 hours	$14.50 per hour

In July the company produced 3,420 units using 13,680 pounds of the direct material and 2,856 direct labor-hours. During the month, the company purchased 14,440 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $88,125 and the actual variable overhead cost was $39,700.

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: