(a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2017, assuming production levels range from 38,300 to 50,900 direct labor hours. Use increments of 4,200 direct labor hours. (List variable costs before fixed costs.) (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) (c) 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.)

Problem 24-2A 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 2017. 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 Indirect labor Indirect materials Factory utilities Factory repairs Rate per Direct Labor Hour $0.44 0.55 0.32 0.24 Annual Fixed Costs Supervision $41,040 Depreciation 16,200 Insurance 13,320 Rent 30,960 The master overhead budget was prepared on the expectation that 479,500 direct labor hours will be worked during the year. In June, 37,500 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.47, indirect materials $0.54, factory utilities $0.35, and factory repairs $0.29. Fixed: same as budgeted