Tos Corporation's flexible budget cost formula for indirect materials, a variable cost, is $0.60 per unit of output.If the company's performance report for last month shows an $800 unfavorable spending variance for indirect materials and if 9,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:

A) $5,600
B) $4,600
C) $5,400
D) $6,200

The flexible budget formula for indirect materials is $0.60 per unit of output, which means that for every unit produced, the company expects to spend $0.60 on indirect materials.

To calculate the expected cost of indirect materials for the month, we need to multiply the output (9,000 units) by the cost per unit ($0.60).

9,000 units x $0.60 per unit = $5,400

This is the amount that the company should have spent on indirect materials, based on the flexible budget formula.

However, the performance report shows an unfavorable spending variance of $800, which means that the actual cost of indirect materials was higher than expected.

To calculate the actual cost of indirect materials, we need to add the unfavorable variance to the expected cost.

$5,400 + $800 = $6,200

Therefore, the actual cost incurred for indirect materials for the month was $6,200.

The correct answer is D) $6,200.

Flexible budget = $0.60 × 9,000 = $5,400 Unfavorable Spending Variance implies Actual Results > Flexible Budget
$800 = Actual results - Flexible budget
$800 = Actual results - $5,400
Actual results = $5,400 + $800 = $6,200