Corinnes Country Rockers uses flexible budgeting. The companys budget for variable overhead is $24,000 and for fixed

Corinne’s Country Rockers uses flexible budgeting. The company’s budget for variable overhead is $24,000 and for fixed overhead is $15,000. When Corinne’s analyzes this overhead using activity-based costing, the budgeted overhead of $39,000 is traced to six activities: materials handling, machinery setup, assembly, finishing, maintenance, and inspections. The costs associated with each activity and their respective cost drivers are as follows:

Required
A. Compute the overhead application rate for each activity. Put your answer in the format of an activity-based costing flexible budget.
B. Using the actual volume and cost, compute the spending variance, the efficiency variance, and the total variance for eachactivity.

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Flexible Budget Budgeted Activity Materials handling Setting up machinery Assembly Finishing Maintenance Inspections Amount Cost Driver $6,000 4,000 14,000 4,800 4,800 5,400 Number of moves Number of setups Number of labor hours Number of labor hours Number of maintenance hours Number of inspections Volume 200 80 6,000 2,000 160 2,400 Activity Materials handling Setting up machinery Assembly Finishing Maintenance Inspections Cost $7,400 4,375 14,500 Volume 205 moves 90 setups 6,300 labor hours 6,0102,100 labor hours 5,700 5,900 150 maintenance hours 2,440 inspections