Talladega Industries, Inc

Multiple Choice

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.

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 material cost variance was:

A) $1,960 unfavorable.
B) $600 favorable.
C) $1,360 unfavorable.
D) None of the above is correct.