At 18000 Direct Labor Hours the Flexible Budget for Indirect

question 18

Multiple Choice

At 18000 direct labor hours the flexible budget for indirect materials is $36000. If $37400 are incurred at 18400 direct labor hours the flexible budget report should show the following difference for indirect materials:

• A) $1400 unfavorable.
• B) $1400 favorable.
• C) $600 favorable.
• D) $600 unfavorable.

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