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The Redrock Company uses flexible budgeting for cost control. Redrock produced 10,800 units of product during October, incurring indirect material costs of $13,000. Its master
The Redrock Company uses flexible budgeting for cost control. Redrock produced 10,800 units of product during October, incurring indirect material costs of $13,000. Its master budget for the reflected indirect material costs of $180,000 at a production volume of 144,000 units. What was the flexible budget variance for the indirect material costs in October?
Group of answer choices
$1,100 favorable.
$500 favorable.
$2,000 favorable.
$2,000 unfavorable.
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