LaPointe Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards:

Labor Type Standard Mix Standard Unit Price Standard Cost

Cutting 800 hours $12.00 per unit $9,600

Setup 200 hours 8.00 per unit $1,600

Yield 5,000 units

During January, the following actual production information was provided:

Labor Type Actual Mix

Cutting 7,000 hours

Setup 3,000 hours

Yield 45,000 units

Required:Calculate the labor mix variance.

Enter Favorable variance as a positive value; Unfavorable variance as a negative value.