Milar Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 12.0 pounds $ 11.50 per pound Direct labor 0.8 hours $ 36.00 per hour Variable overhead 0.8 hours $ 17.00 per hour In January the company produced 3,470 units using 13,880 pounds of the direct material and 2,896 direct labor-hours. During the month, the company purchased 14,640 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $103,840 and the actual variable overhead cost was $47,220. 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: