Smith Manufacturing Uses a Standard Costing System What Are Smith's Material and Conversion Variances for the Month

Smith Manufacturing uses a standard costing system.For the current period, Smith allocated the following costs using a predetermined overhead rate: $$\begin{array} { l r r r } & \text { Material } & \text { Conversion } & \text { Total } \\\text { Allocated Costs: } & & & \\\text { Units completed } & \$ 40,000 & \$ 20,000 & \$ 60,000 \\\text { Units in process end of period } & \$ 5,000 & \$ 3,000 & \$ 8,000 \\& \$ 45,000 & \$ 23,000 & \$ 68,000 \\& & & \\\text { Actual Costs: } & \$ 50,000 & \$ 22,000 & \$ 72,000\end{array}$$ What are Smith's material and conversion variances for the month?

A) $10,000 Unfavorable materials variance/$2,000 Unfavorable conversion variance.
B) $20,000 Unfavorable materials variance/$2,000 Favorable conversion variance.
C) $5,000 Unfavorable materials variance/$1,000 Favorable conversion variance.
D) $12,000 materials variance/$50,000 conversion variance.
E) None of the above.