Refer to DCdessertss activity-based flexible budget in Exhibit 11-11. Suppose that the companys activity in June is described as follows:

Process hours	7,500
Production runs	16
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's conventional flexible budget (Exhibit 11-3).

Activitv-Based Flexible Budget: DCdesserts Determine the flexible budgeted cost for each item in the table below. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use the activitybased 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)