Nesbitt Corporation's flexible budget cost formula for indirect materials, a variable cost, is $0.85 per unit of output. Assume that actual units produced equals standard units produced. If the company's performance report for last month shows a $700 unfavorable spending variance for indirect materials and if 7,200 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:

A. $6,820

B. $6,500

C. $5,420

D. $6,120