At $15,000 direct labor hours the flexible budget for indirect materials is $30,000. If $38,000 of of indirect materials costs are incurred at $20,000 direct labor hours the flexible budget report should show the following difference for indirect materials 

Question 3 options 

A $2,000 favorable 

B $2,000 unfavorable 

C $800 favorable 

D $800 unfavorable