Bluecap Company uses a standard cost system and flexible budgets for control purposes....
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Bluecap Company uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2021 Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at denominator volume Total standard factory overhead rate per DLH 7,000 70% 28,000 $ 103,200 $ 15.10 During 2021, Bluecap worked 38,000 DLHs and manufactured 9.900 units. The actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for the units produced, of which $8,000 was due to fixed factory overhead. In preparing a budget for 2022 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be practical capacity"), to manufacture 9,300 units at a budgeted total of 27,900 DLHs. The fixed overhead production volume variance for Bluecap Company in 2021 was: (Round your intermediate calculation to 2 decimal places.)
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