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 Variable costs 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. Variable-per direct labor hour: Indirect labor $0.43, indirect materials $0.52, factory utilities $0.33, and factory repairs $0.24 Fixed: same as budgeted, Your ritaly correct. Try again (*) Prepare manufacturing overhead ble budget for the year ending December 31, 2020, assuming production levels range from 49,700 60,100 direct labor hours. Use increments of 5.000 direct laterhours (the variable costs before fed costs) FILMER COMPANY Monthly Manufacturing Overhead Pele Budget Ironing Department For the Year 2020 Activity Lovel Direct Labor Hours 42700 54100 Www directa 1700 19400 21720 40 Indirect Materials jasotz treet Factory 12010 1450 15290 18000 Factory 9700 2000 6140 7819 4 47640 Dec 19200 19000 1200 19000 Joreet 1230 12240 R 27720 locicz 27720 DOWS DO01 100000 1000 171640 15493 (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 Budget Actual Costs nor Unfavorable Direct Labor Hours 40400 40410 Variable Costs Indirect Labor 16160 17372 1212 Unfavorable Indirect Materials 21816 21008 808 Favorable JULUI Factory Utilities 12120 13332 1212 Unfavorable Factory Repairs 8080 9696 1616|| Unfavorable Total Variable Costs 58176 61408 3232 Unfavorable Fixed Costs Supervision 47640 47640 Neither Favorable nor Unfavorable Depreciation 19200 19200 Neither Favorable nor Unfavorable 1000 Insurance 12240 12240 Neither Favorable nor Unfavorable Rent 27720 27720 Neither Favorable nor Unfavorable Total Fixed Costs 106800 106800 Neither Favorable nor Unfavorable Total Costs 164976 16820B 3232 || Urfavorable Click HY would like to Show Work for this questioni Doen Show Work
