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At 7000 direct labor hours, the flexible budget for indirect materials is $14000. If $15400...

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Accounting

At 7000 direct labor hours, the flexible budget for indirect materials is $14000. If $15400 are incurred at 7400 direct labor hours, the flexible budget report should show the following difference for indirect materials:

$600 unfavorable.

$1400 favorable.

$1400 unfavorable.

$600 favorable.

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