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88. At 24000 direct labor hours, the flexible budget for indirect materials is $36000. If $39400 are incurred at 24400 direct labor hours, the flexible

88.

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:

$2800 unfavorable.

$2800 favorable.

$3400 unfavorable.

$3400 favorable.

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