N 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 16,900 pounds of the direct material at a cost of $14,640. 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: