How do variances in direct materials and direct labor affect unit costs in a manufacturing business?
A. An increase in direct materials variance and a decrease in direct labor variance will both lower unit costs.
B. A decrease in direct materials variance and an increase in direct labor variance will raise unit costs.
C. Both an increase in direct materials variance and an increase in direct labor variance will raise unit costs.
D. Both a decrease in direct materials variance and a decrease in direct labor variance will lower unit costs.