Hedwig plc$.$ has the following direct material standards to manufacture product CD: $1\mathrm{.}4$ kilos per widget at $2\mathrm{.}5$ per kilo. Hedwig plc$.$ actually acquired $1,200$ kilos of material to make $1,000$ units of CD$.$ The total material cost is $6,000.$ Considering this information, which of the following statements is true?

Question $1$ Select one:

a$.$

The absolute value of the price variance equals $3,000($favourable$)$ and the absolute value of the quantity variance equals $500($unfavourable$).$

b$.$

The absolute value of the price variance equals $3,000($unfavourable$)$ and the absolute value of the quantity variance equals $500($favourable$).$

c$.$

The absolute value of the price variance equals $500($favourable$)$ and the absolute value of the quantity variance equals $3,000($unfavourable$).$

d$.$

None of the answers is true.