When preparing flexible budget, the following information is for ABC Corporation:

Direct Materials (measured in pounds)

Standard price per unit of input $20

Actual price per unit of input $18

Standard inputs per unit of output 3 pounds

Actual units of input 8,300 pounds

Actual units of output 2,770 units

What is the flexible budget variance for direct materials?

Select one:

a. $16,800 Unfavorable

b. $16,800 Favorable

c. $16,400 Unfavorable

d. $16,400 Favorable