Company X manufactures a single product for which the standard cost of one unit is as follows:

Direct material (3.0 kg at 2 per kg)	6.00
Direct labour (1.2 hours at 10 per hour)	12.00
Manufacturing overheads	7.00
	25.00

During January, the company produced 9,000 units and the actual costs were as follows:

Costs:
24,000 kg of material	56,500
10,950 hours of labour	110,700
Overheads	61,700
	228,900

Material price variance is [ Select ] ["8,500 adverse", "2,500 adverse", "2,500 favourable", "8,500 favourable"]

Material usage variance is [ Select ] ["2,500 favourable", "6,000 adverse", "6,000 favourable", "2,500 adverse"]

Overhead variance is [ Select ] ["1,300 adverse", "There is no variance", "1,300 favourable"]

Which of the following might explain the above variances?

Material variance - [ Select ] ["Purchasing cheaper lower quality material", "Purchasing more expensive higher quality material"]

Overhead variance