Question
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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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
