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	7,500
Production runs	16
New products tested	20
Direct material handled (pounds)	40,000

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).

a	Indirect material	???
b	Utilities	???
c	Inspection	???
d	Test kitchen	???
e	Material handling	???
f	Total overhead cost	???

Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use the activity-based flexible budget. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Variance

g

h

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 "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Variance

i.

j.

Waxed paper Monthly Flexible Overhead Budget Budgeted Cost Lovel of Activity Cost Pool I (cost driver: process hours) 6,000 7,500 9,000 Indirect material: Nonstick cooking spray S12.000 $15.000 S18.000 2.000 2.500 3,000 Other paper products 2.000 2.500 3,000 Miscellaneous supplies 6,000 7.500 9,000 Indirect labor: maintenance 4.000 5.000 6.000 Utilities: Electricity 3.000 3.750 4.500 Natural gas 1.000 1.250 1.500 Total of cost pool I S30,000 $37.500 $45,000 Cost Pool II (cost driver: production runs) S 12 16 Indirect labor Inspection $ 2.200 S 3.300 $ 4,400 Setup 3.000 4.500 6,000 Total of cost pool II S 5.200 S 7.800 S10400 Cost Pool III (cost driver: new products tested) 20 30 40 Test Kitchen $ 1.200 $ 1.800 $ 2.400 Total of cost pool III S 1.200 S 1.800 $ 2,400 Cost Pool IV (cost driver: pounds of material handled) 20,000 30.000 40.000 Material handling S 2.000 $ 3.000 $ 4,000 Total of cost pool IV $ 2.000 S 3.000 $ 4.000 Cost Pool V (facility level costs) Indirect labor: production supervisors $ 6.000 $ 6,000 S 6,000 Depreciation: plant and equipment 500 500 500 Insurance and property taxes 100 100 100 Total of cost pool V $ 6,600 $6,600 $ 6,600 Total overhead cost $45.000 $56.700 S68.400 The -3 Flexible Overhead Budget TS DE HOLE PUT PALE LAYOUT TOMAS DATA VW X 1723 A B D E 1 DCDESSERTS.COM 2 Monthly Flexible Overhead Budget 3 4 Cost Process Hours 5 Budgeted Overhead Costs per Hour 6,000 7.500 9,000 CON $ 200 $ 0.33 0.33 1.00 0.67 12,000 $ 2,000 2,000 6,000 4,000 15,000 $18,000 2,500 3,000 2,500 3,000 7,600 9.000 5,000 6,000 Natural gas 0.50 0.17 3.000 1.000 30.000 $ 3.750 4,500 1.250 1,500 37500 $ 45,000 $ 7 Variable overhead costs 8 Indirect material: 9 Nonstick cooking spray 10 Waxed paper 11 Other paper products 12 Miscelaneous supplies 13 Indirect labor. maintenance 14 Utilities 15 Electricity 16 17 Total variable overhead cost 18 19. Fored overhead costs: 20 Indirect labor 21 Inspection 22 Production supervisors 23 Setup specialists 24 Material handing 25 Depreciation, plant and equipment 28 Insurance and property taxes 27 Test Kitchen 20 Total foed overhead cost 29 Total overhead cost an Powe $ SONBR 2.200 $ 6,000 3,000 2.000 500 100 1,200 15,000 $ 45,000 $ 2.200 $ 2.200 6,000 6.000 3,000 3,000 2.000 2000 500 500 100 100 1,200 1.200 15,000 $15,000 52,500 $ 60.000 $ $