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

Post by **answerhappygod** » Sun Jul 03, 2022 3:48 pm

: Refer To Dcdesserts Com S Activity Based Flexible Budget In Exhibit 11 11 Suppose That The Company S Activity In June Is 1 (23.06 KiB) Viewed 15 times

: Refer To Dcdesserts Com S Activity Based Flexible Budget In Exhibit 11 11 Suppose That The Company S Activity In June Is 2 (47.83 KiB) Viewed 15 times

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 30 30,000 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.com's conventional flexible budget (Exhibit 11-3).

Exhibit 11-11 Activity-Based Flexible Budget DCdesserts.com DC4 desserts DCDESSERTS.COM Monthly Flexible Overhead Budget Budgeted Cost 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 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 Level of Activity 6,000 7,500 9,000 $12,000 2,000 2.000 6.000 4.000 3,000 3.750 1,000 1.250 $30,000 $37.500 8 12 $ 2.200 3,000 $ 5,200 20 $ 1,200 $ 1.200 20,000 $ 2,000 $ 2,000 $15,000 $18,000 2.500 3.000 2.500 3,000 7.500 9,000 5.000 6.000 $ 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 4,500 1.500 $45.000 16 $ 4.400 6,000 $10.400 40 $ 2,400 $ 2,400 40,000 $ 4.000 $ 4,000 $ 6,000 500 100 $ 6,600 $68,400