Bluecap Co

question 92

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 factory overhead spending variance in 2010,based on a three-variance breakdown (decomposition) of the total overhead variance is:

• A)$3,200 favorable.
• B)$11,440 unfavorable.
• C)$15,040 favorable.
• D)$17,280 favorable.
• E)$17,440 unfavorable.

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Definitions:

Informed Consent

A process whereby individuals are provided with all relevant information regarding a procedure or experiment, allowing them to make a voluntary and informed decision about participation.

Experiment

A deliberate manipulation of a variable to see if corresponding changes in behavior result, allowing the determination of cause-and-effect relationships.

Experimenter Effects

Unintentional cues or biases from the experimenter that can influence the outcome of a study or the behavior of participants.

Unintended Changes

Alterations that occur without deliberate planning or goal-setting, often unexpectedly affecting environments or systems.