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? Variable costs Direct materials ($8) Direct labor ($19) Overhead ($27) Total variable costs Fixed costs Depreciation Supervision Total fixed costs Total costs Budget $30,000 $85,000 $126,000 $241,000 $15,000 $8,000 $23,000 $264,000 Actual $29,250 $84,180 $128,200 $241,630 $15,000 $8,200 $23,200 $264,830 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. O It will eliminate the variance for direct materials and change the unfavorable variance for total costs to a favorable variance. It will increase the favorable variance for direct materials