Borden Enterprises Uses Standard Costing

question 135

Multiple Choice

Borden Enterprises uses standard costing. For the month of April, the company reported the following data: • Standard direct labor rate: $10 per hour
• Standard hours allowed for actual production: 8,000 hours
• Actual direct labor rate: $9.50 per hour
• Labor efficiency variance: $4,800 Favorable
The labor rate variance for April is:

• A)$3,760 U
• B)$3,760 F
• C)$2,850 F
• D)$2,850 U