Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 11.0 pounds $ 10.50 per pound Direct labor 0.8 hours $ 34.00 per hour Variable overhead 0.8 hours $ 16.00 per hour In January the company produced 3,450 units using 13,800 pounds of the direct material and 2,880 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,560. The actual direct labor cost was $97,506 and the actual variable overhead cost was $44,188. 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 January is: