Refer to DCdesserts.com's activity-based flexible budget in Exhibit 11-11 Suppose that the company's activity in June...

  

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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) 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 $3,000. Use the activity-based flexible budget. 2-b. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use DCdesserts.com's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Indirect material a. b. Utilities 9,000 12 30 40,000 Req 2A Determine the flexible budgeted cost for each item in the table below. c. Inspection d. Req 2B Test kitchen e. Material handling f. Total overhead cost DC4 desserts DCDESSERTS.COM Budgeted Cost Nonstick cooking spray Waxed paper Other paper products Monthly Flexible Overhead Budget Cost Pool I (cost driver: process hours) Indirect material: Miscellaneous supplies Indirect labor: maintenance Utilities: Electricity Natural gas Total of cost pool I Cost Pool II (cost driver: production runs) Indirect labor: Inspection Setup Total of cost pool II Cost Pool III (cost driver: new products tested) Test kitchen Total of cost pool III Cost Pool IV (cost driver: pounds of material handled) Material handling Total of cost pool IV Cost Pool V (facility level costs) Indirect labor: production supervisors Depreciation: plant and equipment Insurance and property taxes Total of cost pool V Total overhead cost Total overhead cost Level of Activity 6,000 7,500 $12,000 2,000 2,000 6,000 4.000 3,000 1,000 $30,000 8 $ 2.200 3,000 $ 5,200 20 $ 1.200 $ 1.200 20,000 $ 2.000 $ 2,000 $15,000 2,500 2.500 7,500 5.000 3.750 1.250 $37.500 12 $ 3.300 4,500 $ 7.800 30 $ 1.800 $ 1.800 30,000 $ 3.000 $ 3,000 9,000 $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 $ 6,000 500 500 500 100 100 100 $ 6,600 $ 6,600 $ 6.600 $45,000 $56.700 $68,400 $45,000 356,700 $68,400 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) 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 $3,000. Use the activity-based flexible budget. 2-b. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use DCdesserts.com's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Indirect material a. b. Utilities 9,000 12 30 40,000 Req 2A Determine the flexible budgeted cost for each item in the table below. c. Inspection d. Req 2B Test kitchen e. Material handling f. Total overhead cost DC4 desserts DCDESSERTS.COM Budgeted Cost Nonstick cooking spray Waxed paper Other paper products Monthly Flexible Overhead Budget Cost Pool I (cost driver: process hours) Indirect material: Miscellaneous supplies Indirect labor: maintenance Utilities: Electricity Natural gas Total of cost pool I Cost Pool II (cost driver: production runs) Indirect labor: Inspection Setup Total of cost pool II Cost Pool III (cost driver: new products tested) Test kitchen Total of cost pool III Cost Pool IV (cost driver: pounds of material handled) Material handling Total of cost pool IV Cost Pool V (facility level costs) Indirect labor: production supervisors Depreciation: plant and equipment Insurance and property taxes Total of cost pool V Total overhead cost Total overhead cost Level of Activity 6,000 7,500 $12,000 2,000 2,000 6,000 4.000 3,000 1,000 $30,000 8 $ 2.200 3,000 $ 5,200 20 $ 1.200 $ 1.200 20,000 $ 2.000 $ 2,000 $15,000 2,500 2.500 7,500 5.000 3.750 1.250 $37.500 12 $ 3.300 4,500 $ 7.800 30 $ 1.800 $ 1.800 30,000 $ 3.000 $ 3,000 9,000 $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 $ 6,000 500 500 500 100 100 100 $ 6,600 $ 6,600 $ 6.600 $45,000 $56.700 $68,400 $45,000 356,700 $68,400

Answer rating: 100% (QA)

Solution Req1 Statement of activity wise and total overhead c... View the full answer