ECONOMICS

M uses a standard costing system, with its material inventory account being maintained at standard costs. The following details have been extracted from the standard cost card in respect of direct materials:Material = 8 kg @ $0.80/kg = $6.40 per unit. Budgeted production in April 20X9 was 850 units. The following details relate to actual materials purchased and issued to production during April 20X9 when actual production was 870 units:Materials purchased 8, 200 kg costing $6.888 Materials issued to production 7, 150 kg Which of the following correctly states the material price and usage variances to be reported?