Zanny Electronics Companyuses a standard cost system to collect costs related to theproduction of its water ski radios. The direct labor standard foreach 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 used6,600 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