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

question 53

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 fixed overhead production volume variance for Bluecap Co. in 2019, to the nearest dollar, was:

• A) $11,280 favorable.
• B) $17,280 favorable.
• C) $28,800 unfavorable.
• D) $34,800 unfavorable.
• E) $51,840 favorable.

---

Definitions:

String Method

A function or operation available for string objects that allow manipulation of textual data, such as concatenation, extraction, or comparison.

String Objects

Instances in programming that represent sequences of characters used to manipulate text data.

Single Quotes

Used in programming to define a character literal or to create a string literal in some programming languages.

ASCII Character Set

A character encoding standard for electronic communication, representing text in computers with numbers assigned to letters, digits, and symbols.