Emmett Brown, a student of all sciences, is the owner of We Don't Need Wheels, Inc. The Delorean factory located in Hill Valley, California is managed by Marty McFly. The factory manufactures a part used to make the company's best selling product, The Flux Capacitor. Marty is responsible for controlling all manufacturing costs related to production of the part. The following monthly costs were budgeted for the Delorean factory: Direct materials Direct labor wages $15,650 $5,030 Factory rent $2,200 Factory depreciation $1,300 Factory insurance and taxes $575 Factory repairs and maintenance $950 Factory utilities Marty's salary $1,632 $3,000 During the month, the actual costs incurred in the factory were as follows: direct materials, $14,200; direct labor wages, $7,540; factory rent, $2,200; factory depreciation, $1,525; factory insurance and taxes, $575; factory repairs and maintenance, $1,600; factory utilities, $2,040; Marty's salary, $3,000. Assuming a variance of $0 is considered neither favorable nor unfavorable, which of the following is correct? The factory would report zero favorable variances and five unfavorable variances. The factory would report one favorable variance and one unfavorable variance. The factory would report four favorable variances and four unfavorable variances. The factory would report one unfavorable variance and four favorable variances. The factory would report one favorable variance and four unfavorable variances