The Valenti Company Uses Flexible Budgeting for Cost Control

Multiple Choice

The Valenti Company uses flexible budgeting for cost control. Valenti produced 10,800 units of product during October, incurring indirect material costs of $13,000. Valenti's master budget reflected indirect material costs of $180,000 at a production volume of 144,000 units. What was the indirect material cost variance for October?

A) $1,100 favorable
B) $1,100 unfavorable
C) $2,000 favorable
D) $500 favorable