part b

CE RED Question 2 Bonita 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 trening Department, which is based on an activity index of direct labor hours. Variable costs Indirect labor Indirect materials Factory utilities Factory repairs Kate per Direct Labor Hour Annual Fixed Costs $0.42 Supervision $46,800 0.55 Depreciation 16,920 0.32 insurance 14,760 0.20 Rent 28,080 The master overhead budget was prepared on the expectation that 479,200 direct labor hours will be worked during the year. In June, 46,100 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-- per direct labor hour: indirect labor $0.44, Indirect materials $0.54, factory wellties $0.35, 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, 2020, assuming production levels range from 35,000 to $2,400 direct labor hours Use increments of 5,800 direct labor hours. (tist variable costs before fixed costs) BONITA COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Activity level Direct Labor Hours 35000 40000 46600 52400 (mandate the morning ceremo. ware) BONITA COMPANY Hanthy taleluig Galaal thaaila thuligal Ironing Departmund For the Year 2020 Activity Dit aber Hours 25000 40000 46600 2400 A Indirect Labor 15400 $ 1792 20504 23006 5 Indirect Mail DORT DECE 25144 26290 > > > > v