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JJ Abrams planned to use $164 of material per unit but actually used $160 of material per unit, and planned to make 1,200 units but

JJ Abrams planned to use $164 of material per unit but actually used $160 of material per unit, and planned to make 1,200 units but actually made 1,000 units.

The answer is 32800 unfavourable. I know how to get 32800, but I don't understand why it is unfavourable since the flexible budget of the direct material is smaller than the static budget

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