Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 4.5 pounds 0.8 hours 0.8 hours Standard Price or Rate $ 4.00 per pound $21.00 per hour $ 9.50 per hour In January the company produced 3,320 units using 13,280 pounds of the direct material and 2,776 direct labor-hours. During the month, the company purchased 14,040 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $57,895 and the actual variable overhead cost was $25,260. 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: The labor rate variance for January is: = Multiple Choice $401 F $401 U $2,119 U $2,119 F