Community Manufacturing Inc. developed the following standard costs for direct material and direct labor for one of their major products, the 30-gallon heavy-duty plastic container.

	Standard quantity	Standard price
Direct materials	0.20 pounds	$25 per pound
Direct labor	0.10 hours	$15 per hour

During May, Community produced and sold 10,000 containers using 2,200 pounds of direct materials at an average cost per pound of $24 and 1,050 direct labor hours at an average wage of $14.75 per hour.

1) May's direct material price variance was:

a. $2,800 favorable

b. $2,200 favorable

c. $5,000 unfavorable

d. None of the above is correct

2) May's direct material quantity variance was:

a. $2,800 unfavorable

b. $2,200 favorable

c. $5,000 unfavorable

d. None of the above is correct

3) May's direct labor cost variance was:

a. $750.00 unfavorable

b. $262.50 favorable

c. $487.50 unfavorable

d. indeterminable using the above information

4) May's direct labor rate variance was:

a. $750.00 unfavorable

b. $262.50 favorable

c. $487.50 favorable

d. indeterminable using the above information

5) May's direct labor efficiency variance was:

a. $750.00 unfavorable

b. $262.50 favorable

c. $487.50 favorable

d. indeterminable using the above information