Eliezrie corporation makes a product with the following standard costs: standard quantity or hours standard price or rate standard cost per unit direct materials 6.5 kilos $1.00 per kilo $6.50 direct labor 0.3 hours $10.00 per hour $3.00 variable overhead 0.3 hours $4.00 per hour $1.20 in january the company's budgeted production was 7,400 units but the actual production was 7,500 units. the company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output. during the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. the actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. 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: