Epley Corporation makes a product with the following standard costs:

n July the company produced 3,300 units using 12,240 pounds of the direct material and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148. 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:

Direct materials. Direct labor. Variable overhead.. Standard Quantity or Hours 3.5 pounds 0.8 hours 0.8 hours Standard Price or Rate $3.00 per pound $19.00 per hour $8.00 per hour