Bluecap Co During 2019, Bluecap Worked 28,000 DLHs and Manufactured 9,600 Units

question 113

Multiple Choice

Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: $\begin{array}{lrr}\text { Denominator volume-number of units }&8,000\\\text { Denominator volume-percent of capacity }&80\%\\\text { Denominator volume-standard direct labor hours (DLHs) } & 24,000 \\\text { Budgeted variable factory overhead cost at denominator volume } & \$103,200 \\\text { Total standard factory overhead rate per DLH } &\$ 15.10\end{array}$ During 2019, Bluecap worked 28,000 DLHs and manufactured 9,600 units. The actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for the units produced, of which $6,000 was due to fixed factory overhead. In preparing a budget for 2020 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be "practical capacity") , to manufacture 9,000 units at a budgeted total of 27,000 DLHs.
The total budget for fixed factory overhead in 2019 for Bluecap Co., to the nearest whole dollar, was:

• A) $230,400.
• B) $259,200.
• C) $265,200.
• D) $276,480.
• E) $288,000.

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Definitions:

Rapport Topic

A subject or matter used as a basis to establish a positive and understanding relationship with someone, especially in sales or professional settings.

First Meetings

The initial encounters or engagements between individuals or groups, often aimed at discussing ideas, making introductions, or establishing a relationship.

Statement Approach

A sales technique where the salesperson starts the conversation with a provocative statement or question designed to engage the potential customer immediately.

Demonstration Approach

refers to the sales technique where a product's features and benefits are shown directly to the customer to influence their purchase decision.