Refer to DCdesserts.coms activity-based flexible budget in Exhibit 11-11 Suppose that the companys activity in June is described as follows: Process hours 6,000 Production runs 16 New products tested 20 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.com's conventional flexible budget (Exhibit 11-3).

Exhibit 11-3 Flexible Overhead Budget desserts Exhibit 11-11 Activity-Based Flexible Budget: DCdesserts.com desserts DCDESSERTS.COM Monthly Flexible Overhead Budget Budgeted Cost Level of Activity CostPoolI(costdriver:processhours)6,0007,5009,000 Indirect material: Nonstick cooking spray Waxed paper Other paper products Miscellaneous supplies Indirect labor: maintenance $12,0002,0002,0006,0004,000$15,0002,5002,5007,5005,000$18,0003,0003,0009,0006,000 Utilities: Electricity Total of cost pool I Cost Pool II (cost driver: production runs) Indirect labor: Exhibit 11-3 Flexible Overhead Budget desserts Exhibit 11-11 Activity-Based Flexible Budget: DCdesserts.com desserts DCDESSERTS.COM Monthly Flexible Overhead Budget Budgeted Cost Level of Activity CostPoolI(costdriver:processhours)6,0007,5009,000 Indirect material: Nonstick cooking spray Waxed paper Other paper products Miscellaneous supplies Indirect labor: maintenance $12,0002,0002,0006,0004,000$15,0002,5002,5007,5005,000$18,0003,0003,0009,0006,000 Utilities: Electricity Total of cost pool I Cost Pool II (cost driver: production runs) Indirect labor