Question: When are cost-based price or rate variances, such as a materials price or a labor rate variance, favorable? Question Select one: a. Variances are favorable when the actual quantity used is more than the standard quantity. b. Variances are favorable when the actual price or rate is higher than the standard price or rate. c. Variances are favorable when the actual quantity used is lower than the standard quantity. d. Variances are favorable when the actual price or rate is less than the standard price or rate.