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Allen Companys master budget called for 50,000 units of production. Budgeted direct material costs at this level were $450,000 or $9 per unit. Allen actually

Allen Companys master budget called for 50,000 units of production. Budgeted direct material costs at this level were $450,000 or $9 per unit. Allen actually produced 54,000 units and incurred direct material costs of $496,000. What is Allens direct material variance using flexible budgeting?

a. $10,000 U b. $46,000 U c. $36,000 U d. $10,000 F

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