Dreary Credit Agency Uses a Standard Cost System for the Processing

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