Milar Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		9.5	pounds	$	9.00	per pound
Direct labor		0.8	hours	$	31.00	per hour
Variable overhead		0.8	hours	$	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 14,440 pounds of the direct material at a cost of $35,100. 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

$411 F

$411 U

$3,309 U

$3,309 F