Jazz It Up is a manufacturer of jazz instruments, specifically the company focuses on producing saxophones. At the beginning of July, it was estimated that the saxophones would require 6 hours of direct labor and the related unit cost for direct labor to be $60.00. Through the month of July, the company incurred 11,400 actual labor hours to produce 2,000 saxophones. Direct laborers were paid at a rate of $10.30 per hour. Which of the following statements is correct with regard to the saxophone production in July?

Question 10 options:

	The standard direct labor rate was greater than the actual labor rate paid during the month.
	It is likely that the rate and efficiency variances are unrelated as to why they are occurring because they are both favorable variances.
	The unfavorable rate variance tells us that the actual purchase price of direct materials was greater than the estimated purchase price.
	If the company paid higher wages to acquire more efficient and skilled workers in the production of saxophones, it was worth it.
	The direct labor hours expected for the actual output during the month were less than the actual direct labor hours logged during the month.