Assume (1) the quantity of materials purchased equals the quantity used in production, (2) the materials spending variance is $400 unfavorable, and (3) the materials quantity variance is $200 favorable. Given these assumptions, which of the following statements is true?

Multiple Choice

The materials price variance must be $200 favorable.

The materials price variance must be $200 unfavorable.

The materials price variance must be $600 favorable.

The materials price variance must be $600 unfavorable.