11 of 15 < > - / 10 !!! Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2020. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours. Variable costs Rate per Direct Labor Hour Annual Fixed Costs Indirect labor $0.42 Supervision $46,800 Indirect materials 0.55 Depreciation 16,920 Factory utilities 0.32 Insurance 14,760 Factory repairs 0.20 Rent 28,080 The master overhead budget was prepared on the expectation that 479,200 direct labor hours will be worked during the year. In June, 46,100 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.44, indirect materials $0.54, factory utilities $0.35, and factory repairs $0.24. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 35,000 to 52,400 direct labor hours. Use increments of 5,800 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Question 11 of 15 < > $ Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 > > > > > > > > > > > $ 1A $ 69 -/10 $ (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) > > > ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 Budget Actual Costs $ $ $ Difference Favorable Unfavorable Neither Favora nor Unfavoral $ $ $ eTextbook and Media Question 11 of 15 < > -/10 $ $ $ eTextbook and Media State the formula for computing the total budgeted costs for the Ironing Department. (Round variable cost per unit to 2 decimal places, e.g. 1.55.) The formula is total $ fixed costs + variable costs of $ per direct labor hour