please help with the incorrect ones in red, thanks!
Problem 23-2A a-b, d (Video) (Part Level Submission) 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 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. Rate per Direct Labor Hour Variable costs Annual Fixed Costs Indirect labor Indirect materials $0.40 0.50 0.30 0.20 Supervision Depreciation Insurance Rent $48,000 18,000 12,000 30,000 Factory utilities Factory repairs 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 $0.44, indirect materials $0.48, factory utilities $0.32, and factory repairs $0.25. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 35,000 to 50,000 direct labor hours. Use increments of 5,000 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Activity Level IIIIIIIIIIIIIIII T Direct Labor Hours A 0000 41000! 41000 439000 IIIIIIIIIIIIIIIIII Variable Costs T Indirect Labor A 14000 16000 18000 20000 T Indirect Materials | T 17500 20000 22500 25000 T Factory Utilities A T 10500 12000 13500 15000 T Factory Repairs 7000 8000 10000 Total Variable Costs 49000 56000 63000 70000 Fixed Costs Fixed Costs T Supervision 48000 48000 48000 48000 Depreciation 18000 18000 18000 18000 Insurance 12000 12000 12000 12000 Insurance Rent Rent = 30000 30000 30000 30000 30000 Total Fixed Costs 108000 108000 108000 108000 Total Costs Total Costs 157000 164000 171000 178000 (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs T Direct Labor Hours A 41000 41000 Variable Costs T Indirect Labor A 16400 18040 1640 1640 Unfavorable unfavorable T Indirect Materials 20500 19680 IT Favorable T Factory Utilities A T 12300 T 13120 Unfavorable T Factory Repairs 8200 10250 2050 Unfavorable Total Variable Costs Total Variable Costs T 57400 57400 T 61090 690 Unfavorable Fixed Costs Supervision 48000 48000 Neither Favorable nor Unfavorable T Depreciation A 18000 18000 of Neither Favorable nor Unfavorable 4 Neither Favorable nor Unfavorable T Insurance 12000 12000 Neither Favorable nor Unfavorable 4 OOOHOO T Rent Rent 30000 30000 Neither Favorable nor Unfavorable T Total Fixed Costs A 108000 108000 Neither Favorable nor Unfavorable ^ Total Costs = Total Costs 165400 169090 1 36901 Unfavorable 3690 Unfavorable
