This resulted in production of 6900 water ski radios for

Reference no: EM13482516

1.) Zanny Electronics Companyuses 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$7.20.

During the month of August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. This resulted in production of 6,900 water ski radios for August. What is Zanny's labor rate variance for the month of August?

A) $972 favorable

B) $1,188 unfavorable

C) $2,160 favorable

D) $2,808 unfavorable

E) None of the above

2. Information on Westcott Company's direct labor costs for a recent month follows:

Standard direct labor rate..........................	$3.75
Actual direct labor rate..............................	$3.50
Total standard direct labor-hours..............	10,000
Direct labor efficiency variance................	$4,200	Unfavorable

What were the actual hours worked during the month, rounded to the nearest hour?

A) 10,714

B) 11,120

C) 11,200

D) 11,914

E) None of the above

Reference no: EM13482516

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