Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products.

Direct materials:	10 pounds $3 per pound
Direct labor:	2.5 hours $8 per hour
Variable manufacturing overhead:	2.5 hours $2 per hour
The following activity occurred during the month of June:
Materials purchased:	125,000 pounds at $2.60 per pound
Materials used:	110,000 pounds
Units produced:	10,000 units
Direct labor:	24,000 hours at $7.50 per hour
Actual variable manufacturing overhead:	$51,000

The company records materials price variances at the time of purchase. The direct labor efficiency variance is

a. $20,000 unfavorable.

b. $8,000 favorable.

c. $20,000 favorable.

d. $8,000 unfavorable.

The direct labor rate variance is

a. $12,000 favorable.

b. $8,000 favorable.

c. $8,000 unfavorable.

d. $12,000 unfavorable