Todco planned to produce 5,000 units of its single product, Teragram, during November. The standard specifications for one unit of Teragram include ten pounds of materials at $.50 per pound. Actual production in November was 5,200 units of Teragram. The accountant computed a favorable materials purchase price variance of $580 and an unfavorable materials quantity variance of $320. Based on these variances, one could conclude that