Diana Industries, Inc. (DII), developed standard costs for direct material and direct labor. In 2010, DII estimated the following standard costs for one of their major products, the 10-gallon plastic container.

Budgeted quantity Budgeted price

Direct materials 0.10 pounds $30 per pound

Direct labor 0.05 hours $15 per hour

During June, DII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct manufacturing labor-hours at an average wage of $15.25 per hour.

4) June's direct material flexible-budget variance is:

A) $600 favorable

B) $1,360 unfavorable

C) $1,860 unfavorable

D) $15,000 favorable

5) June's direct material price variance is:

A) $600 favorable

B ) $1,360 favorable

C) $1,960 unfavorable

D) $15,000 favorable