Bluecap Co

question 36

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 fixed overhead production-volume variance in 2010 is:

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

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Definitions:

ABC Model

A cognitive behavioral approach that describes the relationships between antecedents, behavior, and consequences; often used in psychology to understand and modify behavior.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Attention-Catching

Refers to techniques or features designed to capture the viewer's or listener's immediate interest or focus.

Experiential Model

A conceptual framework that emphasizes learning through experience, often involving direct interaction with the environment or products.