Question
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
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).
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