An organization planned to use $44 of material per unit of activity but it actually used $42 of material per unit of activity, and it planned to make 1,200 units but it actually made 1,000 units. The flexible budget variance for materials is:

A) $2,000 favorable.
B) $14,000 unfavorable.
C) $16,400 unfavorable.
D) $2,400 favorable.

A
Explanation: A) (1,000 units × $44 ) - (1,000 × $42 ) = $2,000 favorable variance

Business

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