Response to the following problem:
Kibodeaux Corporation makes a product with the following standard costs:
| Inputs |
Standard Quality or Hours |
Standard Price or Rate |
Standard Cost Per Unit |
| Direct materials |
9.8 liters |
$6.50 per liter |
$63.70 |
| Direct labor |
0.1 hours |
$23.50 per hour |
$2.35 |
| Variable overhead |
0.1 hours |
$4.50 per hour |
$0.45 |
The company budgeted for production of 3,300 units in June, but actual production was 3,550 units. The company used 34,435 liters of direct material and 337 direct labor-hours to produce this output. The company purchased 35,640 liters of the direct material at $4.80 per liter. The actual direct labor rate was $24.20 per hour and the actual variable overhead rate was $4.20 per hour.
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 June is? Please explain.