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

Process hours6,000

Production runs 8

New products tested 40

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).