A Manufacturer Planned to Use $82

Multiple Choice

A manufacturer planned to use $82.00 of materials per unit produced, but in the most recent period it actually used $80.00 of material per unit produced. During this same period, the company planned to produce 1,200 units, but actually produced only 1,000 units. The flexible-budget variance for materials, to the nearest dollar, is:

A) $2,000 favorable.
B) Impossible to determine without additional information.
C) $14,000 unfavorable.
D) $16,400 unfavorable.
E) $2,400 unfavorable.