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Borden Enterprises uses standard costing. For the month of April, the company reported the following data:
Standard direct labour rate $10 per hour
Standard hours allowed for actual production 8,000
Actual direct labour rate $9.50 per hour
Labour efficiency variance $4,800 favourable
Problem 1: What was the labour rate variance for April?
A) $3,760 unfavourable.
B) $3,760 favourable.
C) $2,850 unfavourable.
D) $2,850 favourable.
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