TB MC Qu. 9-311 Milar Corporation makes a product with ... Milar Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 10.0 pounds 0.8 hours 0.8 hours Standard Price or Rate $ 9.50 per pound $32.00 per hour $15.00 per hour In January the company produced 3,430 units using 13,720 pounds of the direct material and 2,864 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,480. The actual direct labor cost was $91,236 and the actual variable overhead cost was $41,188. 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 $412 F