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 9,000
Denominator volume—percent of capacity 90%
Denominator volume—standard direct labor hours (DLHs) 27,000
Budgeted variable factory overhead cost at denominator volume $104,200
Total standard factory overhead rate per DLH $15.10
During 2019, Bluecap worked 28,000 DLHs and manufactured 9,800 units. The actual factory overhead cost for the year was $17,000 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 9,200 units at a budgeted total of 27,600 DLHs.
The variable overhead efficiency variance in 2019 for Bluecap Co. (to nearest whole dollar) was: (Round your intermediate calculation to 2 decimal places.)
O $5,404 favorable.
O $9,964 unfavorable.
O $11,164 favorable.
O $13,404 unfavorable.
O $19,164 unfavorable.
