Hamner Corporation's Flexible Budget Performance Report for Last Month Shows

Multiple Choice

Hamner Corporation's flexible budget performance report for last month shows that actual indirect materials cost,a variable cost,was $45,240 and that the spending variance for indirect materials cost was $3,480 unfavorable.During that month,the company worked 17,400 machine-hours.Budgeted activity for the month had been 17,000 machine-hours.The cost formula per machine-hour for indirect materials cost must have been closest to:

A) $2.46
B) $2.87
C) $2.40
D) $2.80