Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 5.0 pounds 0.8 hours 0.8 hours Standard Price or Rate $ 4.50 per pound $22.00 per hour $10.00 per hour In January the company produced 3,330 units using 13,320 pounds of the direct material and 2,784 direct labor hours. During the month, the company purchased 14,080 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $60,846 and the actual variable overhead cost was $26,668. 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 $402 o $402 U o $2,238 U o $2238