Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 9.5 pounds 0.8 hours 0.8 hours Standard Price or Rate $ 9.00 per pound $31.00 per hour $14.50 per hour In January the company produced 3,420 units using 13,680 pounds of the direct material and 2,856 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,440. The actual direct labor cost was $88,125 and the actual variable overhead cost was $39,700 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: Multiple Choice O Somu $3,309 F