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CK Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.

Flexible ------------Variances-------------

Budget Price Efficiency

Material A $20,000 $1,000U $3,000U

Material B 40,000 500U 1,000F

Direct manufacturing labor 40,000 500U 2,500F

The actual amount spent for Material B was

Select one:

a. $39000

b. $39500

c. $31000

d. $40500