Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 11.5 pounds $ 11.00 per pound Direct labor 0.8 hours $ 35.00 per hour Variable overhead 0.8 hours $ 16.50 per hour In January the company produced 3,460 units using 13,840 pounds of the direct material and 2,888 direct labor-hours. During the month, the company purchased 14,600 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $100,665 and the actual variable overhead cost was $45,700. 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: