Milar Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		8.0	pounds	$	7.50	per pound
Direct labor		0.8	hours	$	28.00	per hour
Variable overhead		0.8	hours	$	13.00	per hour

In January the company produced 3,390 units using 13,560 pounds of the direct material and 2,832 direct labor-hours. During the month, the company purchased 14,320 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $78,888 and the actual variable overhead cost was $35,284.

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: