Bluecap Co

question 128

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 standard variable overhead application rate per direct labor hour in 2010 was:

• A)$4.30.
• B)$4.50.
• C)$6.90.
• D)$9.30.
• E)$9.60.

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Definitions:

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Diagnostic Labels

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David Rosenhan

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