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At 8,000 units, indirect materials are budgeted to be $40,000. If $50,000 of indirect materials costs are incurred for 9,500 units, what should the STATIC

At 8,000 units, indirect materials are budgeted to be $40,000. If $50,000 of indirect materials costs are incurred for 9,500 units, what should the STATIC BUDGET report as the difference for indirect materials?

$10,000 favorable.

$2,500 unfavorable.

$2,500 favorable.

$10,000 unfavorable.

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