Refer to DCdesserts's activity-based flexible budget In Exhibit 11-11. Suppose that the company's activity In June is described as follows: Process hours 6,080 Production runs 16 New products tested 40 Direct material handled (pounds) 30, 080 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's conventional flexible budget (Exhibit 11-3) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 Determine the flexible budgeted cost for each item in the table below. a. Indirect material b. Utilities c. Inspection d. Test kitchen e. Material handling f. Total overhead costReq 1 Req 2A Reg 22. Compute the variance for setup cost during the men1, assuming that the actual 5e11|p cost was. $3,000. Use the activity based exible budget. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "III" for no effect (i.e., zero variance). E: Show less A. Reg 1 Reg 2A Req 28 Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use DCdesserts's conventional flexible budget. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Show less A VarianceExhibit 1111 ActivityBased Flexible Budget DCdesser'rs DCdesserts Monthly Flexible Overhead Budget Level of Activity Cost Pool I (cost driver: process hours) 6,666 7,566 9,666 Indirect material: Nonstick cooking spray $ 12,666 $ 15,666 $ 16,666 Waxed paper 2,666 2,566 3,666 Other paper products 2,666 2,566 3,666 Miscellaneous supplies 6,666 7,566 9,666 Indirect labor: maintenance 4,666 5,666 6,666 Utilities: Electricity 3,666 3,756 4,566 Natural gas 1,666 1,256 1,566 Total of cost pool I $ 36,666 $ 37,566 $ 45,666 Cost Pool II (cost driver: production runs) 3 12 16 Indirect labor: Inspection $ 2,266 $ 3,366 $ 4,466 Setup 3,666 4,566 6,666 Total of cost pool II $ 5,266 $ 7,866 $ 16,466 Cost Pool III (cost driver: new products tested) 26 36 46 Test kitchen 6 1,266 $ 1,666 $ 2,466 Total of cost pool III $ 1,266 $ 1,666 $ 2,466 Cost Pool IV (cost driver: pounds of material handled) 26,666 36,666 46,666 Material handling $ 2,999 $ 3:999 $ 41939 Total of cost pool IV $ 2,999 $ 3,999 $ 4:999 Cost Pool V (facility level costs) Indirect labor: production supervisors $ 6,666 $ 6,666 $ 6,666 Depreciation: plant and equipment 566 566 566 Insurance and property taxes 166 166 166 Total of cost pool U 6 6,666 $ 6,666 $ 6,666 Total overhead cost $ 45,666 6 56,766 $ 68,466 Exhibit 113 Flexible Overhead Budget: DCdesserts DCdesserts Monthly Flexible Overhead Budget Process Hours Budgeted Overhead Costs Cost per Hour 6,666 7,566 9,666 Variable overhead costs: Indirect material: Nonstick cooking spray $ 2.66 $ 12,666 $ 15,666 $ 18,666 Waxed paper 6.33 2,666 2,566 3,666 Other paper products 6.33 2,666 2,566 3,666 Miscellaneous supplies 1.66 6,666 2,566 9,666 Indirect labor: maintenance 6.67 4,666 5,666 6,666 Utilities Electricity 6.56 3,666 3,756 4,566 Natural gas 6.17 1,666 1,256 1,566 Total variable overhead cost $ 36,666 $ 32,566 $ 45,666 Fixed overhead costs: Indirect labor: Inspection $ 2,266 $ 2,266 $ 2,266 Production supervisors 6,666 6,666 6,666 Setup specialists 3,666 3,666 3,666 Material handling 2,666 2,666 2,666 Depreciation: plant and equipment 566 566 566 Insurance and property taxes 166 166 166 Test kitchen 1,266 1,266 1,266 Total fixed overhead cost $ 15,666 $ 15,666 $ 15,666 Total overhead cost $ 45,666 $ 52,566 $ 66,666