Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.8 pounds 8.8 hours 0.8 hours Standard Price or Rate 5.5 per pound $24.88 per hour $11.00 per hour Direct materials Direct labor Variable overhead In January the company produced 3,350 units using 13.400 pounds of the direct material and 2,900 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14.160. The actual direct labor cost was $66,796 and the actual variable overhead cost was $29,508. 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 $404F $404 U $2.476 U $2,476 F