Quick Tax Returns Budgets 1

question 113

Multiple Choice

Quick Tax Returns budgets 1.5 direct labor hours for every tax return that it prepares, at a standard cost of $20 an hour. During the most recent year, 500 returns were completed with the labor cost totaling $17,600. The actual labor cost was $22 per hour during that period. What was the direct labor price variance?

• A) $1,500 unfavorable
• B) $1,500 favorable
• C) $1,600 favorable
• D) $1,600 unfavorable

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Definitions:

Cognitive Restructuring

A therapeutic process that involves identifying and challenging negative and irrational thoughts, with the goal of replacing them with more positive and realistic ones.

Self-Efficacy

An individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.

Vicarious Experience

Learning or understanding something through the experiences of another person, without having directly experienced it oneself.

Behavior Rehearsal

A technique used in therapy to practice new behaviors or responses in a safe environment before applying them in real-world situations.