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.

Variable costs		Rate per Direct Labor Hour		Annual Fixed Costs
Indirect labor		$0.40		Supervision		$47,640
Indirect materials		0.54		Depreciation		19,200
Factory utilities		0.30		Insurance		12,240
Factory repairs		0.20		Rent		27,720

The master overhead budget was prepared on the expectation that 484,800 direct labor hours will be worked during the year. In June, 40,400 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variableper direct labor hour: indirect labor $0.43, indirect materials $0.52, factory utilities $0.33, and factory repairs $0.24. Fixed: same as budgeted.

(a) & (b)

	Your answer is partially correct. Try again.

(a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 42,700 to 60,100 direct labor hours. Use increments of 5,800 direct labor hours. (List variable costs before fixed costs.)

(b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.)

This problem has all the information needed to solve it. If you dont know the answer please dont put needs more information. I pay way too much money to not get help. Let another person solve it who knows what they are doing.

ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Activity Level Direct Labor Hours 42700 48500 54300 60100 Variable costs Indirect Labor 17080 194001 21720 24040 > Indirect Materials 23058 26190 29322 32454 Factory Utilities 12810 14550 16290 18030 Factory Repairs 8540 9700 10860 12020 Total Variable Costs 61488 69840 78192 86544 Fixed Costs Supervision 47640 47640 47640 47640 HO X X Depreciation 19200 19200 19200 19200 Insurance 12240 12240 12240 12240 X x X Rent 27720 12240 12240 12240 X Total Fixed Costs 106800 106800 106800 106800 X Total Variable Costs 168288 176640 184992 193344 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 40400 40400 > Variable Costs Indirect Labor 16160 17372 1212 Unfavorable Indirect Materials 21816 21008 808|Favorable > Factory Utilities 12120 13332 1212 Unfavorable > > Factory Repairs 8080 9696 1616|| Unfavorable Total Variable Costs 58176 61408 3232 Unfavorable Fixed Costs Supervision 47640 47640 o Neither Favorable nor Unfavorable X Rent 27720 27720 o Neither Favorable nor Unfavorable X Total Fixed Costs 106800 106800 oNeither Favorable nor Unfavorable Total Variable Costs 164976 168208 3232 Unfavorable