The Following Information Is for Pepper Pike Corporation * Direct Material Is Measured in Pounds _____ Is the Direct

Multiple Choice

The following information is for Pepper Pike Corporation: $\begin{array}{lrl}&\text { Direct }\\&\text { Material }\\\text { Standard price per unit of input } & \$ 20 & \\\text { Actual price per unit of input } & \$ 18 & \\\text { Standard inputs allowed per unit of output } & 3 & \text { pounds } \\\text { Actual units of input } & 8,300 & \text { pounds } \\\text { Actual units of output } & 2,770 \text { units }\end{array}$ * Direct material is measured in pounds _____ is the total direct-material flexible-budget variance.

A) $16,400 unfavorable
B) $16,400 favorable
C) $16,800 favorable
D) $16,800 unfavorable