Bluecap Company uses a standard cost system and flexible budgets for control purposes. The following...
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Bluecap Company uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2021 : During 2021, Bluecap worked 46,000 DLHs and manufactured 9,700 units. The actual factory overhead cost for the year was $12,000 greater than the flexible budget amount for the units produced, of which $5,000 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 9,100 units at a budgeted total of 27,300 DLHs. The variable overhead spending variance in 2021 for Bluecap Company was: (Round your intermediate calculation to 2 decimal places.) $5,000 unfavorable. $12,235 unfavorable. $13,435 favorable. $15,675 unfavorable. $20,675 unfavorable
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