Refer to DCdessertscom's activitybased flexible budget in Exhibit 1111 Suppose that the company's activity in June is described as follows: Process hours 9,000 Production runs 16 New products tested 20 Direct material handled (pounds) 20,000 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 activitybased flexible budget. 2-b. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000 Use DCdessertstcom's conventional flexible budget (Exhibit 11-3); Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req ZB Determine the flexible budgeted cost for each item in the table below. 5 Indirect material _ _ a Material handling Total overhead cost ch dESSCI'IS DCDESSERTS.COM Monthly Flexible Overhead Budget Budgeted Cost Cost Pool I (cost driver: process how's) 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 Total of cost pool 1]] Cost Pool IV (cost driver: pounds of material handled) Material handling Total of cost pool IV Cost Pool V (facility level costs) Indirect labor: production supervisors Depreciation: plant and equipment Insurance and propertyr taxes Total of cost pool V Total overhead cost Level of Activity 6,000 7,500 9,000 512.000 315.000 518.000 2.000 2.500 3.000 2.000 2.500 3.000 6.000 7.500 9.000 4.000 5.000 6.000 3.000 3.750 4.500 1.000 1.250 L500 830.000 837.500 545.000 8 12 16 5 2.200 5 3.300 8 4.400 3.000 4.500 6.000 3 5.200 5 7.800 310.400 20 30 40 5 1.200 S 1.800 S 2.400 5 1.200 5 1.800 S 2.400 70,000 30,000 40,000 5 2.000 3 3.000 5 4.000 S 2.000 5 3.000 S 4.000 5 6.000 5 6.000 S 6.000 500 500 500 l00 100 100 5 6.600 3 6.600 3 6.600 $45,000 $56,700 $68,400