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...

80.2K

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 8,000 Denominator volumepercent of capacity 80 % Denominator volumestandard direct labor hours (DLHs) 24,000 Budgeted variable factory overhead cost at denominator volume $ 104,100 Total standard factory overhead rate per DLH $ 15.10 During 2019, Bluecap worked 28,000 DLHs and manufactured 9,800 units. The actual factory overhead cost for the year was $14,000 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 9,200 units at a budgeted total of 27,600 DLHs. The variable overhead spending variance in 2019 for Bluecap Co. (to the

nearest whole dollar) was: (Round your intermediate calculation to 2 decimal places.)

Multiple Choice

  • $7,000 unfavorable.

  • $9,636 unfavorable.

  • $10,836 favorable.

  • $13,076 unfavorable.

  • $20,076 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