The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine-hours:

Indirect materials: $7,800

Factory rent: $18,000

What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect material is a variable cost and factory rent a fixed cost?

Indirect materials A) $7,800 B) 7,800 C) 6,240 D) 6,240

Factory rent a) $14,400 b) 18,000 c) 14,400d) 18,000