The Bach Company Provides the Following Standard and Actual Costs

Multiple Choice

The Bach Company provides the following standard and actual costs relating to material price and labor usage. $$\begin{array} { l c c } \text { Item to Classify } & \text { Standard } & \text { Actual } \\\text { Material Price } & 8.50 \text { per gallon } & 8.35 \text { per gallon } \\\text { Luabor Usage } & 30,000 \text { hours } & 28,500 \text { per hour }\end{array}$$ Based on the above information,which statement is correct?

A) Both the material price variance and the labor usage variance are unfavorable.
B) Both the materials price variance and the labor usage variance are favorable.
C) The labor usage variance is unfavorable.
D) The materials price variance is unfavorable.