Please answer 2 wrong answers with detailed explanation.

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: Process hours Production runs New products tested Direct material handled (pounds) 6,000 16 20 40,000 Required: 1. Determine the flexible budgeted cost for each item in the table below. 2-a. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,380. Use the activity-based flexible budget. 2-b. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,380. Use DCdesserts.com's conventional flexible budget (Exhibit 11-3). 9,000 Waxed paper DCDESSERTS.COM Monthly Flexible Overhead Budget Budgeted Cost Level of Activity Cost Pool I (cost driver: process hours) 6,000 7,500 Indirect material: Nonstick cooking spray $12.000 $15.000 $18.000 2.000 2.500 3,000 Other paper products 2.000 2.500 3.000 Miscellaneous supplies 6,000 7.500 9,000 Indirect labor: maintenance 4,000 5,000 6.000 Utilities: Electricity 3,000 3.750 4.500 Natural gas 1.000 1.250 1,500 Total of cost pool 1 $30.000 $37.500 $45.000 Cost Pool II (cost driver: production runs) 8 12 16 Indirect labor: Inspection $ 2.200 S 3.300 $ 4.400 Setup 3.000 4.500 6.000 Total of cost pool II $ 5,200 $ 7.800 $10.400 Cost Pool III (cost driver: new products tested) 20 30 40 Test kitchen $ 1.200 S 1.800 $ 2.400 Total of cost pool III $ 1.200 $ 1.800 $ 2.400 Cost Pool IV (cost driver: pounds of material handled) 20,000 30,000 40,000 Material handling $ 2.000 $ 3.000 $ 4.000 Total of cost pool IV $ 2.000 $ 3.000 $ 4.000 Cost Pool V (facility level costs) Indirect labor: production supervisors S 6.000 $ 6,000 $ 6.000 Depreciation: plant and equipment 500 500 Insurance and property taxes 100 100 100 Total of cost pool v $ 6,600 $ 6.600 $ 6,600 Total overhead cost $45,000 $56,700 $68,400 500 Req 1 Req 2A Req 2B Determine the flexible budgeted cost for each item a. $ Indirect material Utilities 22,000 4,000 b. $ C. $ d. Inspection Test kitchen Material handling Total overhead cost $ $ 4,400 2,400 4,000 46,600 X e. f. $ Rec Req 1 Req 2A Req 2B Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,380. Use the activity- based flexible budget. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) Variance $ 1,120 X Favorable