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

Ew products tested 40

Direct material handled (pounds) 30,000

1. Determine the flexible budgeted cost for each item in the table below. (Indirect material, utilities, inspection, test kitchen, material handling, total overhead cost)

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. 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). 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 11-11 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