Company developed standard costs for direct material and direct labor. In 2020, Company estimated the following standard costs for one of their major products, the plastic container. Budgeted quantity Budgeted price Direct materials 0.25 pounds $30 per pound

Direct labor 0.13 hours $16per hour

Actual During July, Company produced and sold 5,000 containers using

1,100 pounds of direct materials at an average cost per pound of $29 and

600 direct manufacturing labor hours at an average wage of $15 per hour.

Direct Material Flexible - Budget variance is