Assembly Line Workers at Thompson Manufacturing Worked a Total of 8,800

question 157

Multiple Choice

Assembly line workers at Thompson Manufacturing worked a total of 8,800 direct labor hours to produce 36,000 units.The standard for producing one unit is 15 minutes at a wage rate of $10.If the actual wage rate was $10.50 per direct labor hour, Thompson's direct labor efficiency variance is

• A)$2,000 favorable
• B)$2,000 unfavorable
• C)$2,100 favorable
• D)$2,100 unfavorable

---

Definitions:

Conjunction Fallacy

A logical fallacy that occurs when it is assumed that specific conditions are more probable than a single general one.

Availability Heuristic

A cognitive shortcut that depends on the first examples that spring to mind when assessing a particular subject, idea, technique, or choice.

Schizophrenia

A mental disorder characterized by disturbances in thought, perception, and behavior, causing significant impairment in social and occupational functioning.

Psychological

Relates to the mind or mental processes and how they influence behavior and well-being.