Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 7.0 pounds 0.8 hours 0.8 hours Standard Price or Rate $ 6.50 per pound $ 26.00 per hour $ 12.00 per hour In January the company produced 3,370 units using 13,480 pounds of the direct material and 2,816 direct labor-hours. During the month, the company purchased 14,240 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $72,810 and the actual variable overhead cost was $32.380. The company applies varlable 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 January is: Ravena Labs., Incorporated makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 14 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October . . 3,750 units of compound were produced during the month There was no beginning direct materials inventory Direct materials purchased: 12,000 ounces for $225,000. The ending direct materials inventory was 2,000 ounces. Direct labor hours worked: 5,600 hours at a cost of $67,200, Variable manufacturing overhead costs incurred amounted to $18,200. Variable manufacturing overhead applied to products: $18,375 The labor efficiency variance for October is