Zanny Electronics Corporation Uses a Standard Cost System for the Production

question 457

Multiple Choice

Zanny Electronics Corporation uses a standard cost system for 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 August?

• A) $972 Favorable
• B) $1,188 Unfavorable
• C) $2,160 Favorable
• D) $2,808 Unfavorable

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Definitions:

Public Displays

Acts of expressing behavior or conveying messages in accessible or viewable public spaces.

Company Email

An electronic mail system used by employees within an organization to communicate internally and externally for business purposes.

Grapevine

An informal communication network within an organization or community, known for its speed and efficiency in spreading information or rumors.

Upward Communication

Communication that flows from subordinates to superiors.