Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours 4.0 pounds 0.8 hours 0.8 hours Direct materials Direct labor Variable overhead Standard Price or Rate $ 3.50 per pound 20.00 per hour $ 9.00 per hour In January the company produced 3,310 units using 13,240 pounds of the direct material and 2,768 direct labor-hours. During the month, the company purchased 14,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $54,960 and the actual variable overhead cost was $23,860. 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