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

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Refer to DCdesserts'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: 7,500 16 40 40,000 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's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Determine the flexible budgeted cost for each item in the table below. a. Indirect material b. Utilities c. Inspection d. Test kitchen e. Material handling f. Total overhead cost < Req 1 Req 2A > Refer to DCdesserts'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: 7,500 16 40 40,000 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's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use the activity- based flexible budget. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Variance < Req 1 Req 2B > Show less Refer to DCdesserts'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) 7,500 16 40 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 $3,000. 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's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use DCdesserts's conventional flexible budget. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Variance < Req 2A Req 2B > Exhibit 1111 Activity-Based Flexible Budget: DCdesserts Cost Pool I (cost driver: process hours) Indirect material: Nonstick cooking spray Waxed paper Other Other paper products Miscellaneous supplies DCdesserts Monthly Flexible Overhead Budget Show less Level of Activity 6,000 7,500 9,000 $ 12,000 $ 15,000 $ 18,000 2,000 2,500 3,000 2,000 2,500 3,000 6,000 7,500 9,000 4,000 5,000 6,000 3,000 3,750 1,000 1,250 4,500 1,500 Indirect labor: maintenance nairect Utilities: 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) $ 30,000 8 20 Test kitchen Total of cost pool III Cost Pool IV (cost pounds of material handled) Material handling Total of cost pool IV Cost Pool (facility level costs) Indirect labor: production supervisors Depreciation: plant and equipment Insurance and property taxes Total of cost pool V Total overhead cost Exhibit 11-3 Flexible Overhead Budget: DCdesserts DCdesserts $ 37,500 12 $ 45,000 16 $ 2,200 3,000 $ 5,200 $ 1,200 $ 1,200 20,000 $ 2,000 $ 2,000 $ 6,000 500 100 $ 6,600 $ 45,000 $ 3,300 4,500 $ 7,800 30 $ 1,800 $ 1,800 30,000 $ 3,000 $ 3,000 $ 6,000 500 100 $ 6,600 $ 56,700 $ 4,400 6,000 $ 10,400 40 $ 2,400 $ 2,400 40,000 $ 4,000 $ 4,000 $ 6,000 500 100 $ 6,600 $ 68,400 Budgeted Overhead Costs Variable overhead costs: Indirect material: Nonstick cooking spray Waxed paper Monthly Flexible Overhead Budget Cost per Hour Process Hours 6,000 7,500 9,000 $ 2.00 0.33 $ 12,000 2,000 $ 15,000 2,500 $ 18,000 3,000 Other paper products 0.33 2,000 2,500 3,000 Miscellaneous supplies Indirect labor: Utilities maintenance 1.00 6,000 7,500 9,000 0.67 4,000 5,000 6,000 Electricity 0.50 Natural gas 0.17 3,000 1,000 3,750 4,500 1,250 1,500 Total variable overhead cost $ 30,000 $ 37,500 $ 45,000 Fixed overhead costs: Indirect labor: Inspection Production supervisors $ 2,200 6,000 $ 2,200 6,000 $ 2,200 6,000 Setup specialists 3,000 Material handling 2,000 Depreciation: plant and equipment Insurance and property taxes Test kitchen 500 100 1,200 Total fixed overhead cost $ 15,000 Total overhead cost $ 45,000 $ 15,000 $ 52,500 3,000 2,000 500 100 1,200 3,000 2,000 500 100 1,200 $ 15,000 $ 60,000 Refer to DCdesserts'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: 7,500 16 40 40,000 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's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Determine the flexible budgeted cost for each item in the table below. a. Indirect material b. Utilities c. Inspection d. Test kitchen e. Material handling f. Total overhead cost < Req 1 Req 2A > Refer to DCdesserts'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: 7,500 16 40 40,000 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's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use the activity- based flexible budget. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Variance < Req 1 Req 2B > Show less Refer to DCdesserts'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) 7,500 16 40 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 $3,000. 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's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use DCdesserts's conventional flexible budget. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Variance < Req 2A Req 2B > Exhibit 1111 Activity-Based Flexible Budget: DCdesserts Cost Pool I (cost driver: process hours) Indirect material: Nonstick cooking spray Waxed paper Other Other paper products Miscellaneous supplies DCdesserts Monthly Flexible Overhead Budget Show less Level of Activity 6,000 7,500 9,000 $ 12,000 $ 15,000 $ 18,000 2,000 2,500 3,000 2,000 2,500 3,000 6,000 7,500 9,000 4,000 5,000 6,000 3,000 3,750 1,000 1,250 4,500 1,500 Indirect labor: maintenance nairect Utilities: 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) $ 30,000 8 20 Test kitchen Total of cost pool III Cost Pool IV (cost pounds of material handled) Material handling Total of cost pool IV Cost Pool (facility level costs) Indirect labor: production supervisors Depreciation: plant and equipment Insurance and property taxes Total of cost pool V Total overhead cost Exhibit 11-3 Flexible Overhead Budget: DCdesserts DCdesserts $ 37,500 12 $ 45,000 16 $ 2,200 3,000 $ 5,200 $ 1,200 $ 1,200 20,000 $ 2,000 $ 2,000 $ 6,000 500 100 $ 6,600 $ 45,000 $ 3,300 4,500 $ 7,800 30 $ 1,800 $ 1,800 30,000 $ 3,000 $ 3,000 $ 6,000 500 100 $ 6,600 $ 56,700 $ 4,400 6,000 $ 10,400 40 $ 2,400 $ 2,400 40,000 $ 4,000 $ 4,000 $ 6,000 500 100 $ 6,600 $ 68,400 Budgeted Overhead Costs Variable overhead costs: Indirect material: Nonstick cooking spray Waxed paper Monthly Flexible Overhead Budget Cost per Hour Process Hours 6,000 7,500 9,000 $ 2.00 0.33 $ 12,000 2,000 $ 15,000 2,500 $ 18,000 3,000 Other paper products 0.33 2,000 2,500 3,000 Miscellaneous supplies Indirect labor: Utilities maintenance 1.00 6,000 7,500 9,000 0.67 4,000 5,000 6,000 Electricity 0.50 Natural gas 0.17 3,000 1,000 3,750 4,500 1,250 1,500 Total variable overhead cost $ 30,000 $ 37,500 $ 45,000 Fixed overhead costs: Indirect labor: Inspection Production supervisors $ 2,200 6,000 $ 2,200 6,000 $ 2,200 6,000 Setup specialists 3,000 Material handling 2,000 Depreciation: plant and equipment Insurance and property taxes Test kitchen 500 100 1,200 Total fixed overhead cost $ 15,000 Total overhead cost $ 45,000 $ 15,000 $ 52,500 3,000 2,000 500 100 1,200 3,000 2,000 500 100 1,200 $ 15,000 $ 60,000