P10-2A Zelmer Company manufactures tablecloths. Sales have grown rapidly over the Prepare flesible bueden, past 2 years. As a result, the president has installed a budgetary control system for manufacturing overhead. 2017. 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. LO 2),E Variable Costs Indirect labor Indirect material:s Factory utilities Factory repairs Rate per Direct Labor Hour $0.40 0.50 0.30 0.20 Annual Fixed Costs Supervision$48 Depreciation Insurance Rent ,000 18,000 12,000 30,000 The master overhead budget was prepared on the expectation that 480,000 direct labor hours will be worked during the year. In June, 41,000 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $o.44, indirect materials $0.48, factory utilities $0.32, and factory repairs $0.25. Fixed: same as budgeted. Instructions g Decem- (a) Total costs: 35,000 DLH, (a) Prepare a monthly manufacturing overhead flexible budget for the year endin ber 31, 2017, assuming production levels range from 35,000 to 50,000 direct labor hours. Use increments of 5,000 direct labor hours. 58,000; 50,000 DLH, $79,000 566,400 (b) Prepare a budget report for June comparing actual results with budget data based on (b) Budget Actual $70,090 the flexible budget