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Halifax Inc. produces retractable pens. November budgeted production costs are given below: Pens to be produced 100,000 Direct material (variable) $30,000 Direct Labor (variable) $50,000

Halifax Inc. produces retractable pens. November budgeted production costs are given below:

Pens to be produced

100,000

Direct material (variable)

$30,000

Direct Labor (variable)

$50,000

Supplies (variable)

$25,000

Supervision (fixed)

$40,000

Depreciation (fixed)

$30,000

Other (fixed)

$10,000

Use the cost information above. In October, the actual direct labor costs were $46,000 and Halifax produced and sold 90,000 pens. The direct labor performance variance (difference) from October to November was:

$5,000 unfavorable.

$5,000 favorable.

$1,000 unfavorable.

$1,000 favorable.

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