Question 7 1 points Save Answe Zanny Electronics Corporation uses a standard cos

Question

Question 7 1 points Save Answe Zanny Electronics Corporation uses a standard cost systerm for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard drect labor cost per hou is $7.20. During the month of August, Zanny's water ski radio production used 6,800 direct labor-hours at a total direct labor cost of $48,708. This resulted in production of 6.900 water si radios for August. What is Zanny's labor rate variance for August? 9972 Favorable $1,188 Unfavorable S2.160 Favorable $2.808 Unfavorable

Explanation / Answer

Labor rate variance = 48708-(6600*7.2)= 1188 Unfavorable Option 2 is correct

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