Handley Manufacturing Company Has Prepared the Following Flexible Budget for August

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.

The most likely explanation of the above variances for Material A is that ________.

A) a lower price than expected was paid for Material A
B) higher-quality raw materials were used than were planned
C) the company used a higher-priced supplier
D) Material A used during September was $2,000 less than expected