Okin Inc.'s flexible budget performance report for last month shows that actual indirect materials cost, a variable overhead cost, was $28,420 and that the variance for indirect materials cost was $3,828 unfavorable. During that month, the company worked 11,600 machine-hours. Budgeted activity for the month had been 11,300 machine-hours.  The cost formula per machine-hour for indirect materials cost must have been closest to:   Select one: a. $2.49 b. $2.18 c. $2.85 d. $2.78 e. $2.12

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Okin Inc.'s flexible budget performance report for last month shows that actual indirect materials cost, a variable overhead cost, was $28,420 and that the variance for indirect materials cost was $3,828 unfavorable. During that month, the company worked 11,600 machine-hours. Budgeted activity for the month had been 11,300 machine-hours. 

The cost formula per machine-hour for indirect materials cost must have been closest to:


 

Select one:
a. $2.49
b. $2.18
c. $2.85
d. $2.78
e. $2.12
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