Blue 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. Rate per Direct Labor Hour Variable costs Indirect labor Indirect materials Factory utilities Factory repairs $0.40 0.54 0.30 0.23 Annual Fixed Costs Supervision $47,040 Depreciation 20,280 Insurance 12,480 Rent 30,000 The master overhead budget was prepared on the expectation that 482,200 direct labor hours will be worked during the year. In June, 43,100 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.42, indirect materials $0.51, factory utilities $0.33, and factory repairs $0.28. Fixed: same as budgeted. Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2017, assuming production levels range from 40,900 to 53,500 direct labor hours. Use increments of 4,200 direct labor hours. (List variable costs before fixed costs.) BLUE COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department Prenare a hudoet renort for lune comnarinn actual results with hudoet data hased on the flexible hudoet (I ist variable costs hefore fixed costs) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) BLUE COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs 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 = 5 + total variable costs of $ per direct labor hour