Problem 10-2A a-b, d (Part Level Submission) (Video) 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 Annual Fixed Costs Variable costs Indirect labor Indirect materials Factory utilities Factory repairs $0.40 Supervision 0.50 Depreciation 0.34 Insurance 0.24 Rent $42,240 18,360 15,600 29,520 The master overhead budget was prepared on the expectation that 479,200 direct labor hours will be worked during the year. In June, 45,100 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable--per direct labor hour: indirect labor $0.43, indirect materials $0.47, factory utilities $0.36, and factory repairs $0.29. Fixed: same as budgeted. (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 Direct Labor Hours 479,200 176,000 > Variable Costs Indirect Labor 18040 19393 1353 Unfavorable Indirect Materials 22550 21197 1353 Favorable Factory Utilities 15334 16236 902 Unfavorable Factory Repairs 108241 130791 2255 Unfavorable