Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	9.0 pounds	$8.5 per pound
Direct labor	0.8 hours	$30.00 per hour
Variable overhead	0.8 hours	$14.00 per hour

In July the company produced 3,410 units using 13,640 pounds of the direct material and 2,848 direct labor-hours. During the month, the company purchased 14,400 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $85,030 and the actual variable overhead cost was $38,220.

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:

$410 F$410 U$3,190 U$3,190