P23.2A (LO 2), E Zelmer 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. Prepare fleable budget budget report and groplt for manufacturing owerhead Variable Costs Indirect labor Indirect materials Factory utilities Factory repairs Rate per Direct Labor Hour $0.40 0.50 0.30 0,20 Annual Fixed Costs Supervision $18,000 Depreciation 18.000 Insurance 12,000 Rent 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 50.44. Indirect materials 80.48, factory utilities $0.32. and factory repairs $0.25. Fixed: same as budgeted Instructions a. Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2022, 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. a. Total costs: 35,000 DLH, $58,000;50,000 DLH $79,000 b. Budget $66,400 Actual $70,090