Baxter Corporation's master budget calls for the production of 5,000 units of its product monthly....
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Accounting
Baxter Corporation's master budget calls for the production of 5,000 units of its product monthly. The master budget includes indrect labor of $144,000 annually. Baxter considers indirect labor to be a variable cost. During the month of April, 4,500 units of product were produced, and indirect labor costs of $10,100 were incurred. A performance report utilizing flexible budgeting would report a spending variance for indirect labor of:
A)$1,900 unfavorable
B) $700 favorable
C) $1,900 favorable
D) $700 unfavorable
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