Activity$-$Based Flexible Budget: DCdessertsExhibit $11-11$

Activity$-$Based Flexible Budget: DCdesserts

Refer to DCdesserts$$s activity$-$based flexible budget in Exhibit $11-11.$ Suppose that the company$$s activity in June is described as follows:

Process hours $6,000$

Production runs $16$

New products tested $40$

Direct material handled $($pounds$)30,000$

Required:

$1.$ Determine the flexible budgeted cost for each item in the table below.

$2-$a$.$ Compute the variance for setup cost during the month, assuming that the actual setup cost was $$3,000.$ Use the activity$-$based flexible budget.

$2-$b$.$ Compute the variance for setup cost during the month, assuming that the actual setup cost was $$3,000.$ Use DCdesserts's conventional flexible budget $($Exhibit $11-3).$Req $1$

Req $2$A

Req $2$B

Determine the flexible budgeted cost for each item inCompute the variance for setup cost during the month, assuming that the actual setup cost was $$3,000.$ Use the activity$-$

based flexible budget.

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect

$($i$.$e$.,$ zero variance$).$

Show less $4$Compute the variance for setup cost during the month, assuming that the actual setup cost was $$3,000.$ Use DCdesserts's

conventional flexible budget.

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect

$($i$.$e$.,$ zero variance$).$

Show less $$

Variance