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Question - Assume that a company manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $13.00 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded:
Direct labor hours used are 2,180 hours. Direct labor costs are $32,000. Units of ZX40 manufactured are 4,600.
Determine the labor rate variance.
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