Milar Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate
Direct materials	7.7	pounds	$ 4.00	per pound
Direct labor	0.1	hours	$ 20.00	per hour
Variable overhead	0.1	hours	$ 4.00	per hour

In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756.

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 efficiency variance for January is: