Which ONE of the following statements is TRUE?

If the actual materials purchase price is LESS than the standard price, the materials PRICE variance is FAVORABLE.

If the actual materials purchase price is LESS than the standard price, the materials PRICE variance is UNFAVORABLE.

If the actual materials purchase price is MORE than the standard price, the materials PRICE variance is FAVORABLE.

If the actual materials purchase price is LESS than the standard price, the materials QUANTITY variance is FAVORABLE.