Q.4 Ch10. At 9,000 direct labor hours, the flexible budget for indirect materials is $27,000. If $28,600 of indirect materials costs are incurred at 9,200 direct labor hours, the flexible budget report should show the following difference for indirect materials:

Select one:

a. $400 favorable.

b. $1,000 favorable.

c. $400 unfavorable.

d. $1,000 unfavorable.