Standard Cost System and Flexible Budgets For Control Purposes

Bluecap Company uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertainsto 2021: During 2021, Bluecap worked 37,000 DLHs and manufactured
9.800

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units. The actual factory overhead cost for the year was
$18,000
greater than the flexible budget amount for the units produced, of which
$4,000
was due to fixed factory overhead. In preparing a budget for 2022 Bluecap decided to raise the level of operation to
90%  Standard Cost System and Flexible Budgets For Control Purposes
of capacity fa level it considers to be “practical capacity” to manufacture
9.200
units at a budgeted total of
27.600DL/Hs
. The total budget for fixed factory overhead in 2021 for Bluecap Company was: (Round your intermediate calculation to 2 decimal places.)
$395340
$401,340
$366540.
$424,140
5412.620 Standard Cost System and Flexible Budgets For Control Purposes

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