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.Its master budget for the reflected indirect material costs of $180,000 at a production volume of 144,000 units.What was the flexible budget variance for the indirect material costs in October?

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