Beautiful Bells' budgeted direct material cost for glass bells is $21,000, based on a forecasted volume of 15,000 units. Due to a reduction in demand, the actual production level in October is 14,000 units. The actual direct material cost for October is $18,000. Based on a flexible budgeting system, the direct materials variance in October is: a. $3,000 favourable O b. There is no direct materials variance O c. $1,400 favourable O d. $1,600 favourable e. $1,400 unfavourable