Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 2.0 pounds 1.7 hours 1.7 hours Standard Price or Rate $ 7.00 per pound $13.00 per hour $ 7.00 per hour In January the company produced 4,700 units using 10,350 pounds of the direct material and 2,330 direct labor-hours. During the month, the company purchased 10,920 pounds of the direct material at a cost of $76,800. The actual direct labor cost was $38,245 and the actual variable overhead cost was $11.946. 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 materials price variance for January is: Multiple Choice $220 U O $360 F $360 U $220 F