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 $33 and 500 direct labor hours at an average wage of $15.25 per hour.

1) August's direct material quantity variance was:

A. $1,960 unfavorable.

B. $600 favorable.

C. None of the above.

D. $1,360 favorable.

2) August's direct labor rate variance was:

A. $125 favorable.

B. None of the above is correct.

C. $125 unfavorable.

D. $142,375 favorable.

3) August's direct labor efficiency variance was:

A. $125 favorable.

B. $142,375 favorable.

C. $125 unfavorable.

D. None of the above is correct.