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Gemead costs in October les have grown rapidly over the past for 2020. The following data care flexible budget, budger Js, and graph for manufacturing

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Gemead costs in October les have grown rapidly over the past for 2020. The following data care flexible budget, budger Js, and graph for manufacturing P10.2A (LO 2), E Zelmer Company manufactures tablecloths. Sales have grown 2 years. As a result, the president has installed a budgetary control system for 2020 manufacturing overhead budget for the Ironing Departme were used in developing the master manufacturing overhead budget for the Iro is based on an activity index of direct labor hours. e, which Rate per Direct Variable Costs Labor Hour Annual Fixed Costs $0,40 Supervision Indirect labor $48.000 Indirect materials Depreciation 18.000 Factory utilities 0.30 Insurance 12.000 Factory repairs 0.20 Rent 30.000 0.50 The master overhead budget was prepared on the expectation that 480,000 direct labor hour worked during the year. In June, 41.000 direct labor hours were worked. At that level of costs were as shown below. Variable per direct labor hour: indirect labor $0.44, indirect materials $0.48, factory $0.32, and factory repairs $0.25. Fixed: same as budgeted. : 35,000 DLH, 2,000 DLH, 400 90 Instructions a. Prepare a monthly manufacturing overhead flexible budget for the year ending December 31.2020. assuming production levels range from 35,000 to 50,000 direct labor hours. Use increments of 5,000 direct labor hours. b. Prepare a budget report for June comparing actual results with budget data based on the flexible budget. c. Were costs effectively controlled? Explain. d. State the formula for computing the total budgeted costs for the Ironing Department. e. Prepare the flexible budget graph, showing total budgeted 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

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