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

What was the labour rate variance for April?

Multiple Choice

• $3,760 favourable.

• $2,850 unfavourable.

• $3,760 unfavourable.

• $2,850 favourable.