Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bluecap co. uses a standard cost system and flexib

Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following...

70.2K

Verified Solution

Question

Accounting

Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volumenumber of units 7,000 Denominator volumepercent of capacity 70 % Denominator volumestandard direct labor hours (DLHs) 21,000 Budgeted variable factory overhead cost at denominator volume $ 102,500 Total standard factory overhead rate per DLH $ 15.10 During 2019, Bluecap worked 27,000 DLHs and manufactured 9,600 units. The actual factory overhead cost for the year was $13,000 greater than the flexible budget amount for the units produced, of which $7,000 was due to fixed factory overhead. In preparing a budget for 2020 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be "practical capacity"), to manufacture 9,000 units at a budgeted total of 27,000 DLHs. The total factory overhead spending variance in 2019 (to the nearest

whole dollar), based on a three-variance breakdown (decomposition) of the total overhead variance for Bluecap Co., was: (Round your intermediate calculation to

2 decimal places.)

Multiple Choice

  • $7,544 favorable.

  • $15,784 unfavorable.

  • $19,384 favorable.

  • $21,624 favorable.

  • $21,784 unfavorable.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

A corporation is considering a securitization and is considering two possible credit enhancement structures backed by...

Biology
1.2K views

What are reactive oxygen species, where do they come from and how does the cell typically...

Biology
1.2K views

Each of the following is true about basal lamina except it underlies epithelial cells it...

Physics
1.2K views

A tank that is 6 feet deep, with a square bottom with sides 4 feet...

Basic Math
1.2K views

9 B 9 A 13 H 5 C ABC geninde AH 1 BC BH 9...

Accounting
1.2K views

An appropriate transfer price between two divisions of Garcia Company can be determined from the...

Accounting
1.2K views

Based on this: Please answer this: Please keep the same format! ...

Accounting
1.2K views

An oil and gas company is trying to determine whether or not it should replace...

Accounting
1.2K views

FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were...

Finance
1.2K views

Which of this may not be a component in an annual report? A....

Accounting
1.2K views

1. Which of the following situations best describes a business combination to be accounted for...

Accounting
1.2K views

Vaughn Company's inventory records show the following data: Inventory January 1st 9900 units at...