Dunbar Footwear Corporation's Flexible Budget Cost Formula for Supplies, a Variable

Multiple Choice

Dunbar Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.67 per unit of output. The company's flexible budget performance report for last month showed a $9,604 favorable spending variance for supplies. During that month, 19,600 units were produced. Budgeted activity for the month had been 19,200 units. The actual cost per unit for indirect materials must have been closest to:

A) $1.73
B) $2.67
C) $2.18
D) $1.69