Budgeted production of 10,000 units includes labor costs of $20,000. Actual production amounted to 12,000 units and $30,000 of labor costs. The performance report would indicate O a favorable outcome of $10,000 O a favorable outcome of $6,000 a variance of $0 an unfavorable outcome of $6,000 O an unfavorable outcome of $10,000 QUESTION 19 The Spring Step Shoe Company uses a process costing system. The Cutting department had 2,000 units in beginning inventory, 100% complete regarding materials and 75% complete regarding conversion. During the current period, 4,000 units were started. By the end of the period, all but 500 units had been completed. The 500 units were 80% complete regarding materials and 40% complete regarding conversion. Equivalent units regarding materials amount to 5,900 4,800 5,500 6,000