Assume (1) the quantity of materials purchased equals the quantity used in production, (2) the materials price 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

1) The materials spending variance must be $600 unfavorable.

2) The materials spending variance must be $200 unfavorable.

3) The materials spending variance must be $600 favorable.

4) The materials spending variance must be $200 favorable.