Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following...
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Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: 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 90% 21,000 $ 103,700 $ 15.10 During 2019, Bluecap worked 26,000 DLHs and manufactured 9,100 units. The actual factory overhead cost for the year was $13,000 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 2020 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be "practical capacity"), to manufacture 8,500 units at a budgeted total of 25,500 DLHS. The total overhead variance in 2019 for Bluecap Co., to the nearest whole dollar, was: (Round your intermediate calculation to 2 decimal places.) Multiple Choice $13,000 unfavorable. $28,208 favorable. $30,448 favorable. $51,008 favorable. $51,008 unfavorable
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