Bluecap Co

question 26

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 spending variance in 2010 is:

• A)$6,000 unfavorable.
• B)$8,000 unfavorable.
• C)$9,200 favorable.
• D)$11,440 unfavorable.
• E)$17,440 unfavorable.

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Definitions:

Specific Action

A particular or distinct deed taken to achieve a goal or address a situation.

Prospecting

The process of searching for potential customers, clients, or buyers in order to develop new business.

Building Interest

The process of engaging an audience's attention and curiosity about a subject or activity.

Screening

The process of evaluating or testing something or someone to determine suitability for a specific purpose or condition.