Last month, Birkner Corporation's actual indirect materials cost, a variable cost, was $30,444 and the spending variance for indirect materials cost was $8,142 favorable. During that month, the company worked 17,700 machine-hours. Budgeted activity for the month had been 18,200 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to:
A. $2.12
B. $1.26
C. $2.18
D. $1.23
Answer: C
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