Borden Enterprises uses standard costing.For the month of April,the company reported the following data: $\begin{array} { l r }
\text { Standard direct labour rate } & \$ 10 \text { per hour } \
\text { Standard hours allowed for actual production } & 8,000 \
\text { Actual direct labour rate } & \$ 9.50 \text { per hour } \
\text { Labour efficiency variance } & \$ 4,800 \text { favourable }
\end{array}$ What was the labour rate variance for April?
A) $2,850 favourable.
B) $2,850 unfavourable.
C) $3,760 favourable.
D) $3,760 unfavourable.

Question

Borden Enterprises uses standard costing.For the month of April,the company reported the following data: $\begin{array} { l r } 
\text { Standard direct labour rate } & \$ 10 \text { per hour } \
\text { Standard hours allowed for actual production } & 8,000 \
\text { Actual direct labour rate } & \$ 9.50 \text { per hour } \
\text { Labour efficiency variance } & \$ 4,800 \text { favourable }
\end{array}$ What was the labour rate variance for April?
A) $2,850 favourable.
B) $2,850 unfavourable.
C) $3,760 favourable.
D) $3,760 unfavourable.

Quizplus · Accepted Answer

The Answer of Borden Enterprises uses standard costing.For the month of April,the company reported the following data: $\begin{array} { l r } 
\text { Standard direct labour rate } & \$ 10 \text { per hour } \
\text { Standard hours allowed for actual production } & 8,000 \
\text { Actual direct labour rate } & \$ 9.50 \text { per hour } \
\text { Labour efficiency variance } & \$ 4,800 \text { favourable }
\end{array}$ What was the labour rate variance for April?
A) $2,850 favourable.
B) $2,850 unfavourable.
C) $3,760 favourable.
D) $3,760 unfavourable.

Borden Enterprises Uses Standard Costing What Was the Labour Rate Variance for April? A) $2,850

Borden Enterprises Uses Standard Costing What Was the Labour Rate Variance for April?
A) $2,850