Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Material A Material B Direct manufacturing labor Flexible Budget $41,000 63,000 82,000 Variances Price Efficiency $1,300F $3,300U 700U 1,300F 500U 2,300F The most likely explanation of the above variances for Material A is that O A. higher - quality raw materials were used than were planned OB. a lower price than expected was paid for Material A O C. the company used a higher - priced supplier OD. Material A used during September was $2,000 less than expected