mba642exercise 11-30

mba642exercise 11-30 - f. Total overhead cost 3,300 45000 +...

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Exercise 11-30 Data: Refer to DC desserts.com's activity based flexible budget in Exhibit 11-11. Suppose that the company's activity in June is described as follows: Process hours 9,000 Production hours 12 New products tested 40 Direct material handled (pounds) 30,000 Questions: 1. Determine the flexible budgeted cost for each of the following: a. Indirect material d. Test kitchen 18000 + 3000 + 3000 +9000 2,400 33,000 b. Utilities e. Material handling 4500 + 1500 3,000 6,000 c. Inspection
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Unformatted text preview: f. Total overhead cost 3,300 45000 + 7800 + 2400 + 3000 + 6600 = 64800 64,800 2. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,500: a. Using the activity-based flexible budget. variance = actual cost - flexible budget x = 3500 -4500 x = -1000 b. Using Dcdesserts.com's conventional flexible budget (Exhibit 11-11). variance = actual cost - flexible budget x = 3500 - 3000 x = 500...
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This note was uploaded on 11/13/2011 for the course MBA 642 taught by Professor Jamesstephens during the Summer '11 term at Bellevue.

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