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 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 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

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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

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

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

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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