Gladstone Footwear Corporation's Flexible Budget Cost Formula for Supplies, a Variable

Multiple Choice

Gladstone Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.83 per unit of output. The company's flexible budget performance report for last month showed a $9,555 unfavorable spending variance for supplies. During that month, 19,500 units were produced. Budgeted activity for the month had been 19,300 units. The actual cost per unit for indirect materials must have been closest to:

A) $3.32
B) $3.81
C) $2.83
D) $3.85