Refer to the activity-based flexible budget for DCdesserts in Exhibit 11–11. Suppose that the company’s activity in June is described as follows:

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 $3,000
a. Using the activity-based flexible budget.
b. Using the conventional flexible budget for DCdesserts (Exhibit 11–3).

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Cost Pool I (cost driver: process hours) Indirect material: Nonstick cooking spray Waxed paper ....... Other paper products Miscellaneous supplies Indirect labor: maintenance Utilities: Electricity Natural gas. Total of cost pool Cost Pool II (cost driver: production runs) Indirect labor: DCDESSERTS Monthly Flexible Overhead Budget Inspection Setup.. Total of cost pool II Cost Pool III (cost driver: new products tested) Test kitchen Total of cost pool IV. Cost Pool V (facility level costs) Indirect labor: production supervisors Depreciation: plant and equipment www. Insurance and property taxes Total of cost pool V.. Total overhead cost Total of cost pool III Cost Pool IV (cost driver: pounds of material handled) Material handling ****** ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ 6,000 7,500 Level of Activity $ 12,000 $15,000 2,000 2,000 6,000 4,000 3,000 1,000 $ 30,000 8 20,000 $ 2,000 $ 2,000 2,500 2,500 7,500 5,000 3,750 1,250 $ 37,500 12 $ 2,200 $ 3,300 3,000 4,500 $ 5,200 $ 7,800 20 30 $ 1,200 $ 1,800 $ 1,200 $ 1,800 30,000 $ 3,000 $ 3,000 9,000 $ 6,000 500 100 $ 6,600 $45,000 $56,700 $18,000 3,000 3,000 9,000 6,000 4,500 1,500 $ 45,000 16 $ 4,400 6,000 $ 10,400 40 $ 2,400 $ 2,400 40,000 $ 4,000 $ 4,000 $ 6,000 $ 6,000 500 500 100 100 $ 6,600 $ 6,600 $68,400