HEADING TRACK DEV AND AN UNEXPECTED AIRSPACE PENETRATION BY A PA28 TRAINING FLT ON AN IFR FLT PLAN S OF MBS; MI.

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I WAS ON A TRAINING FLT ACTING AS A CFI WHEN THE INCIDENT OCCURRED. WE WERE ON AN IFR FLT PLAN AND I WAS GIVING THE STUDENT A STAGE CHK TO DETERMINE IF HE WAS READY FOR AN INST PRACTICAL TEST ACCORDING TO OUR FLT SCHOOL'S POLICY. WE WERE CLRED TO MBS VIA V-45. AS WE APCHED MBS; THE STUDENT DIALED THE OBS 180 DEGS FROM WHERE HE SHOULD HAVE; THUS CAUSING REVERSE SENSING. I WANTED TO SEE WHAT THE STUDENT WOULD DO; BUT HE NEVER CAUGHT THE ERROR. I WAITED TOO LONG TO CORRECT THE STUDENT AND WE APPARENTLY WENT INTO THE AIRSPACE OF AN ADJACENT CTLR. I BELIEVE THE SIT AROSE BECAUSE OF 2 CONFLICTING GOALS. ONE WAS TO TEST THE STUDENT AND SEE WHAT HE WOULD DO. THE OTHER GOAL WAS TO FLY THE PROPER RTE; ESPECIALLY ON AN IFR FLT PLAN. CONTRIBUTING FACTORS WERE THE VMC WX THAT MAY HAVE MADE ME COMPLACENT AND A BUSY CTLR. I WANTED TO TELL HIM WHAT WAS GOING ON; BUT COULDN'T. ALSO; THE CTLR PROBABLY SHOULD HAVE PRIORITIZED BETTER SINCE HE SAW US LEAVING HIS AIRSPACE; HE SHOULD HAVE SAID SOMETHING. TO PREVENT THIS FROM HAPPENING AGAIN; THE OBVIOUS SOLUTION WOULD BE TO NOT LET THE STUDENT GO SO FAR BEFORE INTERVENING. ALSO; IT MAY NOT BE A GOOD IDEA TO GIVE STAGE CHKS WHILE ON IFR FLT PLAN.