Determine zanny''s labor rate variance

Reference no: EM1341407

Zanny Electronics Company uses a standard cost system to collect costs related to the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.30.

During the month of August, Zanny's water ski radio production used 6,700 direct labor-hours at a total direct labor cost of $50,250. This resulted in production of 7,000 water ski radios for August. What is Zanny's labor rate variance for the month of August?

$1,340 unfavorable

$1,340 favorable

$1,490 favorable

$1,290 unfavorable

Reference no: EM1341407

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