Refer to DCdesserts.coms activity-based flexible budget in Exhibit 1111. Suppose that the companys activity in June is
Question:
Refer to DCdesserts.com’s activity-based flexible budget in Exhibit 11–11. Suppose that the company’s activity in June is described as follows:
In Exhibit 11–11
Process hours.............................................................. 9,000
Production runs.......................................................... 12
New products tested.................................................. 40
Direct material handled (pounds)............................. 30,000
Required:
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
2. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,500:
a. Using the activity-based flexible budget.
b. Using DCdesserts.com’s conventional flexible budget (Exhibit 11–3).
Step by Step Answer:
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt