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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