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

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Accounting

Bluecap Company uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2021:
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 $ 103,200
Total standard factory overhead rate per DLH $ 15.10
During 2021, Bluecap worked 28,000 DLHs and manufactured 9,600 units. The actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for the units produced, of which $6,000 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 9,000 units at a budgeted total of 27,000 DLHs.
The fixed overhead production volume variance for Bluecap Company in 2021 was:
answer choices
$28,800 unfavorable.
$11,280 favorable.
$17,280 favorable.
$34,800 unfavorable.
$51,840 favorable.

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Accounting