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Show the difference for indirect materials

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Reference no: EM132972648

Problem 1: At 24000 direct labor hours, the flexible budget for indirect materials is $36000. If $39400 are incurred at 24400 direct labor hours, the flexible budget report should show the following difference for indirect materials:

Option 1: $3400 unfavorable.
Option 2: $2800 favorable.
Option 3: $3400 favorable.
Option 4: $2800 unfavorable.

Reference no: EM132972648

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