Answer following:

A) Were costs effectively controlled? Explain

B) Prepare the flexible budget graph, showing total budget costs at 35,000 and 45,000 direct labor hours. Use increments of 5,000 direct labor hours on the horizontal axis and increments of 10,000 on the vertical axis.

B C D E F GH 31 32 ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2017 34 35 36 Budget at Actual Costs Difference 41,000 41,000 8 Direct labor hours (DLH) 9 Variable costs 0 Indirect labor 1 Indirect materials 2 Factory utilities 3 Factory repairs 4 Total variable costs 5 Fixed costs 16,400 20,500 12,300 18,040 19,680 13,120 8.20010250 2.050 -1,640 820 -820 6 Supervision* 4,000 1,500 1,000 2.5002.500 4,000 1,500 1000 Depreciation 48 Insurance 9 Rent 50 Total fixed costs 1 Total costs $66.400$70,090 3,690 53 4 If the cost goes up its not favorable. 57 58