19) The following information is for Brankov Corporation:

Direct Materials (measured in pounds)

Standard price per unit of input $20

Actual price per unit of input $18

Standard inputs per unit of output 3 pounds

Actual units of input 8,300 pounds

Actual units of output 2,770 units

What is the flexible budget variance for direct materials?

A) $16,400 Favorable

B) $16,400 Unfavorable

C) $16,800 Favorable this is the correct answer. Please explain why!

D) $16,800 Unfavorable