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.

Direct materials Direct labor

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 material price variance was:

Select one: a. $ 600 favorable. b. $1,960 favorable. c. $1,960 unfavorable. d. $1,360 favorable. e. $1,360 unfavorable.