Marigold 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. Variable costs Indirect labor Indirect materials Factory utilities Factory repairs Rate per Direct Labor Hour $0.43 Fixed: same as budgeted. 0.51 Annual Fixed Costs 0.24 Supervision Depreciation 0.32 Insurance Rent $44,400 14,640 16,800 29,280 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.

(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 voriable costs before fixed costs.) Marigold 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 troning Department, which is based on an activity index of direct labor hours. 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 directlabor hour: indirect labor $0.46, indirect materials $0.50, factory utilities $0.35, and factory repairs $0.28. Fioed: same as budgeted. (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List voriable costs before fixed costs.)