Borden Enterprises Uses Standard Costing $\bullet$ Standard Direct Labor Rate: $10 Per Hour

question 70

Multiple Choice

Borden Enterprises uses standard costing.For the month of April,the company reported the following data:
$\bullet$ Standard direct labor rate: $10 per hour
$\bullet$ Standard hours allowed for actual production: 8,000 hours
$\bullet$ Actual direct labor rate: $9.50 per hour
$\bullet$ 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

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Definitions:

Potential for Errors

The likelihood or risk that inaccuracies or mistakes may occur within a process or set of data.

Fraudulent Activity

Deliberate deception to secure unfair or unlawful gain, often involving financial transactions.

Incompatible Duties

Tasks within an organization that are separated to prevent fraud or error, ensuring no individual has control over all aspects of a transaction.

Financial Pressure

The stress or strain on a company's cash flow and finances, potentially affecting its operational capability.