Milar Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		9.0	pounds	$	8.50	per pound
Direct labor		0.8	hours	$	30.00	per hour
Variable overhead		0.8	hours	$	14.00	per hour

In January the company produced 3,410 units using 13,640 pounds of the direct material and 2,848 direct labor-hours. During the month, the company purchased 14,400 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $85,030 and the actual variable overhead cost was $38,220.

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:

• $410 F

• $410 U

• $3,190 U

• $3,190 F