Question: Ignore the format needed in the question. 11. Variance Analysis with Activity-Based Costing. Assume Spindle Company uses activity-based costing to allocate variable manufacturing jverhead costs

Ignore the format needed in the question.

11. Variance Analysis with Activity-Based Costing. Assume Spindle Company uses activity-based costing to allocate variable manufacturing jverhead costs to products. The company identified three activities with the following information for last quarter. Required: 1. Assume Spindle Company produced 70,000 units last quarter. Prepare a variance analysis using the format shown in Figure 4.11 "Variable Overhead Variance Analysis for Jerry's Ice Cream Using Activity-Based Costing". Clearly label each variance as favorable or unfavorable. 2. Company policy is to investigate all variances above 5 percent of the flexible budget amount for each activity. Identify the variances that should be investigated according to company policy. Show calculations to support your answer. One Step Further: Skill-Building Cases

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