Grouper Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2022. 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 Indirect labor $0.43 Supervision $44,880 Indirect materials 0.52 Depreciation 18,000 Factory utilities 0.30 Insurance 17,880 Factory repairs 0.20 Rent 28,680 The master overhead budget was prepared in the expectation that 482,900 direct labor hours will be worked during the year. In June, 44,800 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.45, indirect materials $0.50, factory utilities $0.33, 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, 2022, assuming production levels range from 43,700 to 57,200 direct labor hours. Use increments of 4,500 direct labor hours. (List variable costs before fixed costs.) GROUPER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2022 $ $ $ $ A A A G > > > > (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) GROUPER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report Diffe Favo Unfav Neither! nor Unf. Budget Actual Costs $ $ $ A A A > > > > > ( > > Budget Actual Costs nor Unfavorable $ Unfavorable Favorable Neither Favorable nor Unfavorable