Tos Corporation's Flexible Budget Cost Formula for Indirect Materials,a Variable

Multiple Choice

Tos Corporation's flexible budget cost formula for indirect materials,a variable cost,is $0.60 per unit of output.If the company's performance report for last month shows a $800 unfavorable spending variance for indirect materials and if 9,000 units of output were produced last month,then the actual costs incurred for indirect materials for the month must have been:

A) $5,600
B) $4,600
C) $5,400
D) $6,200