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

Talladega Industries, Inc., (TII) 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, TII 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: Select one: a. $125 unfavorable. b. $125 favorable. c. $142,375 favorable. d. None of the above is correct.

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