Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 10

Baxter Corporation's master budget calls for the production of 5,000 units per month and $144,000 indirect labor costs for the year. Baxter considers indirect labor as a component of variable overhead cost. During April, the company produced 4,500 units and incurred indirect labor costs of $10,100. What amount would be reported in April as a flexible-budget variance for indirect labor