Talladega Industries, Inc., (BII) developed the following standard costs for direct material and direct labor for one of their major products, the 10-gallon plastic container.

	Standard quantity	Standard price
Direct materials	0.10 pounds	$30 per pound
Direct labor	0.05 hours	$15 per hour

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

August's direct labor rate variance was:

Select one:

a. $125 unfavorable.

b. $125 favorable.

c. $142,375 favorable.

d. None of the above is correct.