Refer toAttachment "U5_1" contacting DC Desserts Activity Based Flexible Budget:

Suppose the company's activity in June is described as follows:

Process Hours: 7,500

Production Runs: 16

New Products tested: 30

Direct Materials Handled (pounds): 40,000

Requirements:

1. Determine the flexible budgeted cost for each of the following:

a. Indirect Material

b. Utilities

c. inspection

d. Test Kitchen

e. Material Handling

f. Total overhead cost

2a. Compute the variance for setup cost during the month by , assuming that the actual steps cost was $3,000. Use the activity based flexible budget.

2b. Compute the variance for setup cost during the month by , assuming that the actual steps cost was $3,000.use DCDesserts.com conventional flexible budget. (Refer to attachment "U5_2")