Dreary Credit Agency Uses a Standard Cost System for the Processing

question 141

Multiple Choice

Dreary Credit Agency uses a standard cost system for the processing of its credit applications. The labor standard at Dreary is 10 applications per 8 hour day at a standard cost of $15 per hour. During the last pay period, Dreary's credit agents worked 1,920 hours and processed 2,500 applications. The total labor cost for the agents during this period was $29,184. What was Dreary's labor efficiency variance for this last pay period?

• A)$384 Unfavorable
• B)$816 Favorable
• C)$1,200 Favorable
• D)$1,500 Favorable

---

Definitions:

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts or feelings to others.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way to uncover the unconscious.

Repressed Memories

Memories that have been unconsciously blocked due to the memory being associated with a high level of stress or trauma.

Reaction Formation

A defense mechanism where an individual behaves in a way opposite to their real feelings, often unconsciously.