Bluecap Co

question 93

Multiple Choice

Bluecap Co.uses a standard cost system and flexible budgets for control purposes.The following budgeted information pertains to 2010:
During 2010,Bluecap worked 28,000 direct labor hours and manufactured 9,600 units.The actual factory overhead 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 2011 Bluecap decided to raise the level of operation to 90% of capacity,to manufacture 9,000 units at a budgeted total of 27,000 direct labor hours.The variable overhead efficiency variance in 2010 is:

• A)$3,440 favorable.
• B)$8,000 unfavorable.
• C)$9,200 favorable.
• D)$11,440 unfavorable.
• E)$17,200 unfavorable.

---

Definitions:

Risky Portfolio

An investment portfolio that contains assets with a higher degree of risk, potentially leading to higher returns or greater losses.

Complete Portfolio

The entire portfolio, including risky and risk-free assets.

Optimal Risky Portfolio

A combination of investments that yields the highest expected return for a specific level of risk.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of numerical values, often used to assess the risk associated with a particular investment.