Refer to DCdesserts.com's activity-based flexible budget in Exhibit 11-11 Suppose that the company's activity in June is described as follows: 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). Determine the flexible budgeted cost for ea Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use the activitybased flexible budget. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and ente "0" for no effect (i.e., zero variance).) Complete this question by entering your answers in the tabs below. 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. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorabie" Select "None" and enter " 0 " for no effect (i.e., zero variance).) DCDESSERTS.COM Monthly Flexible Overhead Budget Budgeted Cost Level of Activity Cost Pool I (cost driver: process hours) 6,0007,5009.000 Indirect material: Nonstick cooking spray Waxed paper Other paper products Miscellaneous supplies Indirect labor: maintenance Utilities: Electricity Natural gas Total of cost pool I Cost Pool II (cost driver: production runs) Indirect labor: Inspection Setup Total of cost pool II Cost Pool III (cost driver: new products tested) Test kitchen Cost Pool V (facility level costs) Indirect Iabor: production supervisors Depreciation: plant and equipment Insurance and property taxes Total of cost pool V Total overhead cost Refer to DCdesserts.com's activity-based flexible budget in Exhibit 11-11 Suppose that the company's activity in June is described as follows: 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). Determine the flexible budgeted cost for ea Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use the activitybased flexible budget. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and ente "0" for no effect (i.e., zero variance).) Complete this question by entering your answers in the tabs below. 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. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorabie" Select "None" and enter " 0 " for no effect (i.e., zero variance).) DCDESSERTS.COM Monthly Flexible Overhead Budget Budgeted Cost Level of Activity Cost Pool I (cost driver: process hours) 6,0007,5009.000 Indirect material: Nonstick cooking spray Waxed paper Other paper products Miscellaneous supplies Indirect labor: maintenance Utilities: Electricity Natural gas Total of cost pool I Cost Pool II (cost driver: production runs) Indirect labor: Inspection Setup Total of cost pool II Cost Pool III (cost driver: new products tested) Test kitchen Cost Pool V (facility level costs) Indirect Iabor: production supervisors Depreciation: plant and equipment Insurance and property taxes Total of cost pool V Total overhead cost
