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At 11000 direct labor hours, the flexible budget for indirect materials is $22000. If $26400 are incurred at 11400 direct labor hours, the flexible budget

At 11000 direct labor hours, the flexible budget for indirect materials is $22000. If $26400 are incurred at 11400 direct labor hours, the flexible budget report should show the following difference for indirect materials:

$3600 unfavorable.

$3600 favorable.

$4400 unfavorable.

$4400 favorable.

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