Bluecap Co

question 158

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 total overhead variance in 2010 is:

• A)$14,000 unfavorable.
• B)$15,040 favorable.
• C)$17,280 favorable.
• D)$37,840 favorable.
• E)$37,840 unfavorable.

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Definitions:

Melanin

A pigment produced by the melanocytes in the skin, hair, and eyes, responsible for the coloration and protection against ultraviolet radiation.

Stretch Marks

Lines or streaks on the skin, often resulting from rapid stretching of the skin due to growth, weight gain, or pregnancy.

Dermis

The dermis is a layer of skin located beneath the epidermis, containing nerve endings, sweat glands, hair follicles, and blood vessels.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and connective tissue.