CALCULATOR PRINTER VERSION BACK NEX Problem 10-2A a-b, d (Video) 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. Rate per Direct Labor Hour Variable costs Annual Fixed Costs $0.43 0.51 Indirect labor Indirect materials Factory utilities Factory repairs Supervision Depreciation Insurance $44,400 14,640 16,800 29,280 0.32 0.24 Rent The master overhead budget was prepared on the expectation that 477,100 direct labor hours will be worked during the year. In June, 44,500 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.46, indirect materials $0.50, factory utilities $0.35, and factory repairs $0.28. Fixed: same as budgeted. CALCULATOR PRINTER VERSION BACK NEXT (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 39,800 to 52,700 direct labor hours. Use increments of 4,300 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Activity Level Direct Labor Hours Variable Costs Indirect Labor $ $ $ $ Indirect Materials Factory Utilities Factory Repairs Total Variable Costs Fixed Costs Supervision Depreciation dd DNA CALCULATOR PRINTER VERSION BACK NEXT Depreciation Insurance Rent Total Fixed Costs Total 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.) ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Direct Labor Hours Variable Costs Indirect Labor $ 11. DAA