Yellowcap Co. uses a standard cost system and flexible budgets for control purposes. The following...
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Accounting
Yellowcap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volumenumber of units 6,000 Denominator volumepercent of capacity 60 % Denominator volumestandard direct labor hours (DLHs) 18,000 Budgeted variable factory overhead cost at denominator volume $ 102,100 Total standard factory overhead rate per DLH $ 15.10 During 2019, Bluecap worked 22,000 DLHs and manufactured 9,100 units. The actual factory overhead cost for the year was $17,000 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 8,500 units at a budgeted total of 25,500 DLHs. The total budget for fixed factory overhead in 2019 for Bluecap Co., to the nearest whole dollar, was: (Round your intermediate calculation to 2 decimal places.)
a. $140,940.
b. $169,740.
c. $175,740.
d. $187,020.
e. $198,540.
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