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Kenosha Industries, Inc., ( KII ) developed the following standard costs for direct material and direct labor for one of their major products, the 1

Kenosha Industries, Inc., (KII) developed the following standard costs for direct material and direct labor for one of their major products, the 10-gallon plastic container.
\table[[,Standard Quantity,Standard Price],[Direct materials,0.10 pounds,$30 per pound],[Direct labor,0.05 hours,$15 per hour]]
During August, KII 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 efficiency variance was:
a. $125 unfavorable.
b. $125 favorable.
c. $142,375 favorable.
d. Zero variance.
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