Question - Epley Corporation makes a product with the following standard costs:

Standard Quantity or HoursStandard Price or Rate  Direct materials9.5 pounds$9.0 per pound  Direct labor0.8 hours$31.00 per hour  Variable overhead0.8 hours$14.50 per hour

In July the company produced 3,420 units using 13,680 pounds of the direct material and 2,856 direct labor-hours. During the month, the company purchased 14,440 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $88,125 and the actual variable overhead cost was $39,700.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

Calculate the labor rate variance for July.