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American Company produces flags. The company uses the following direct cost categories: Category Standard Inputs for 1 output Standard Cost per input Direct Materials 2.00 $12.50 Direct Labour 0.70 9.50 Direct Marketing 0.27 5.50 Actual performance and budgeted performance for the company is shown below. ACTUAL Actual output (in units) 3000 Direct Materials: Input purchased and used 11 500 Actual price per input $13.00 Direct Manufacturing Labour: Labour-hours of input 4750 Actual price per hour $10.00 Direct Marketing Labour: Labour-hours of input 2500 Actual price per hour $8.00 What is the price variance of the direct manufacturing labour and the direct marketing labour, respectively? A. $2375.00 unfavourable; $6250.00 unfavourable B. $2931.50 unfavourable; $5196.50 favourable C. $3317.50 favourable; $5337.50 unfavourable D. $4171.50 unfavourable; $5031.50 favourable E. none of the above

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