McKnight Enterprises, Inc. developed standard costs for direct material and direct labor. In 2012 McKnight estimated the following standard costs for one of their major products, the 50-gallon plastic container. Direct materials Direct labor Standard quantity 0.25 pounds 0.03 hours Standard price $40 per pound $18 per hour During August, McKnight produced and sold 8,000 containers using 1,900 pounds of direct materials at an average cost per pound of $41 and 250 direct labor hours at an average wage of $18.25 per hour. Determine the following variances for August by completing the table below For each item, calculate the proper amount, and then indicate if that amount would be favorable or unfavorable Total Direct Material Cost Variance Direct Material Price Variance Direct Material Quantity Variance Formulas a. Total direct material cost variance. Actual direct material cost Standard direct material cost b. Direct material price variance. - (AP-SP) x AQ c. Direct material quantity variance. (AQ-SQ) SP