Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 13.0 pounds $ 12.50 per pound Direct labor 0. 8 hours $ 38.00 per hour kipped Variable overhead 0. 8 hours $ 18.00 per, hour In January the company produced 3,490 units using 13,960 pounds of the direct material and 2,912 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,720. The actual direct labor cost was $110,238 and the actual variable overhead cost was $50,284. 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