Current Attempt in Progress 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. The master overhead budget was prepared on the expectation that 477,800 direct labor hours will be worked during the year. In June, 43,300 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 $0.49, factory utilities $0.38, and factory repairs $0.24. Fixed: same as budgeted. (a) & (b) (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31,2020 , assuming production levels range from 37,400 to 55,100 direct labor hours. Use increments of 5,900 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 VariableCosts $\begin{tabular}{|l|l|} \hline 18619i \\ \hline \end{tabular} \( \$ \longdiv { 2 1 } \) Factory Utilities \begin{tabular}{|l|l|} \hline 12716 & 1 \\ \hline & \\ \hline 7480 & 2 \\ \hline & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 14722 & in \\ \hline & \\ \hline 8660 & in \\ \hline 64084 & \& \\ \hline \end{tabular} \begin{tabular}{l} Factory Repairs Total Variable Costs \\ \hline Fixed Costs \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 22083 & i \\ \hline \end{tabular} 25 \begin{tabular}{|l|l|} \hline 3520 & i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 3520i \\ \hline \end{tabular} 3 Depreciation \begin{tabular}{|l|l|} \hline 1300 & i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 1300i \\ \hline \end{tabular} 1 Insurance v \begin{tabular}{|l|l|} \hline 1330i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 1330i \\ \hline \end{tabular} 1 Rent v Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 \begin{tabular}{c} Budget \\ \hline \\ \hline \end{tabular} Actual Costs Direct Labor Hours \begin{tabular}{l} Actual Costs \\ \hline 43300 \\ \hline \hline \end{tabular} Variable Costs Factory Repairs \begin{tabular}{|l|l|} \hline$ & 8660 \\ \hline i \\ \hline 18619 & i \\ \hline \end{tabular} \( \$ \longdiv { \hline \square } \) \begin{tabular}{|l|l|} \hline 22083 & i \\ \hline \end{tabular} Fixed Costs 1 Rent v \begin{tabular}{|l|l|} \hline 1940i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 1940i \\ \hline \end{tabular} \begin{tabular}{ll} \hline Supervision & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 3520i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 3520i \\ \hline \end{tabular} Depreciation \begin{tabular}{|l|l|} \hline 1300i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 1300i \\ \hline \end{tabular} \begin{tabular}{l} \hline Insurance \\ \hline Total Fixed Costs \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 1330 & 1 \\ \hline 8090 & 1 \\ \hline 72174 & 1 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 1330 & i \\ \hline \begin{tabular}{|l|l|} \hline 8090 & i \\ \hline \end{tabular} \\ \hline \end{tabular} 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 $ + variable costs of $ per direct labor hour. fixed 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 total $ + variable costs of $ per direct labor hour
