Milar Corporation makes a product with the following standard costs Direct materials Direct labor Variable overhead Standard Quantity or Hours 2.0 pounds 0.7 hours 0.7 hours Standard Price or Rate $ 7.00 per pound $15.00 per hour 5.00 per hour In January the company produced 4,500 units using 10,130 pounds of the direct material and 2,110 direct labor-hours. During the month, the company purchased 10,700 pounds of the direct material at a cost of $76,580. The actual direct labor cost was $38,255 and the actual variable overhead cost was $11,956. 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 materials price variance for January is