During the second quarter, Sammy's Shirts decides to leave all budget values the same as in the first quarter, which is shown below. Its direct material costs decrease to $28,250 but all other costs are identical to the first quarter costs. How will this change impact Sammy's in the second quarter? Budget Actual Variable costs Direct materials ($8) $30,000 $29,250 Direct labor ($19) $85,000 $84,180 Overhead ($27) $126,000 $128,200 Total variable costs $241,000 $241,630 Fixed costs Depreciation $15,000 $15,000 Supervision $8,000 $8,200 Total fixed costs $23,000 $23,200 Total costs $264,000 $264,830 O It will eliminate the variance for direct materials and change the unfavorable variance for total costs to a favorable variance. O It will increase the favorable variance for direct materials and change the unfavorable variance for total costs to a favorable variance. O It will increase the favorable variance for direct materials and decrease the unfavorable variance for total costs. O It will eliminate the variance for direct materials and decrease the unfavorable variance for total costs