Novak 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 $0.44 Supervision $ 41,040 Indirect materials 0.55 Depreciation 16,200 Factory'utilities 0.32 Insurance 13,320 Factory repairs 0.24 Rent 30,960 The master overhead budget was prepared in the expectation that 479,500 direct labor hours will be worked during the year. In June. 37.500 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $ 0.47, indirect materials $ 0.54, factory utilities $0.35, and factory repairs $0.29. Fixed: same as budgeted. Question 6 of 7 - 14 III NOVAK COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report Diffe Favo Unfav Neither nor Unf Budget Actual Costs $ $ $ Total Fixed Costs Direct Labor Direct Materials Depreciation Total Variable Costs Factory Utilities Indirect Materials Direct Labor Hours Fixed Costs Insurance Supervision Total Costs Variable Costs Indirect Labor Factory Repairs Rent Activity Level MACBOOK AIR (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2022, assuming production levels range from 38,300 to 50,900 direct labor hours. Use increments of 4,200 direct labor hours. (List variable costs before fixed costs.) NOVAK COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2022 $ $ $ Total Variable Costs Total Costs Factory Repairs Indirect Labor Total Fixed Costs Direct Materials Direct Labor Hours Activity Level Supervision Factory Utilities Depreciation Variable Costs Rent Indirect Materials Direct Labor Fixed Costs Insurance Question 6 of 7