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Ultimate Corporation uses a standard cost system for the production of its water ski radios....

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Accounting

Ultimate 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 the production of 6,900 water ski radios for August. What is Zanny's labor rate variance for August?

$2,808 Unfavorable

$1,188 Unfavorable

$972 Favorable

$2,160 Favorable

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