Refer to DCdesserts.com's activity-based flexible budget inExhibit 11-11.Suppose that the company's activity in June is described as follows:

Process hours - 7,500

Production runs - 16

New products tested -30

Direct material handled (pounds) -40,000

Required:

1. 1.Determine the flexible budgeted cost for each of the following:
2. 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.
3. 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 11-11