Problem 25-02A a-b, d (Part Level Submission) (Video) Crane Company manufactures tablecloths, Sales have grown rapidly over the past 2 years. As a result, the president has inst the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hc Rate per Direct Variable costs Labor Hour Annual Fixed Costs Indirect labor $0.40 Supervision $40,800 Indirect materials 0.50 Depreciation 14,400 Factory utilities 0.30 Insurance 12,000 Factory repairs 0.20 Rent 22,800 The master overhead budget was prepared on the expectation that 475,000 direct labor hours will be worked during the year. were as shown below. Variable-per direct labor hour: indirect labor $0.42, indirect materials $0.49, factory utilities $0.32, 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 le labor hours. (List variable costs before lixed costs) CRANE COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Activity Love Direct Labor Hours 35000 39000 43000 Variable costs 57000 Indirect labor 14,000 5 15600 Indirect Materials 5 15500 13500 years. As a result, the president has installed a budgetary control system for 2020. The following data were used in developing ed on an activity index of direct labor hours. abor hours will be worked during the year. In June, 37,000 direct labor hours were worked. At that level of activity, actual costs y utilities $0.32 and factory repairs $0.24 December 31, 2020, assuming production levels range from 35,000 to 47.000 direct labor hours. Use increments of 4,000 direct CRANE COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Activity Level Direct Labor Hours 35000 39000 43000 47000 Variable Costs v Indirect Labor V 14,000 15600 17200 18800 Indirect Materials 17500 19500 21500 23500 Factory Utilities 10500 11700 12900 14100 Factory Repairs 7000 7800 8600 9400 Total Variable Costs 49000 54600 60200 65800 Fixed Costs Supervision 3400 3400 3400 3400 Depreciation 1200 1200 1200 Insurance 1200 1000 1000 1000 Rent 1000 1900 1900 Total Fixed Costs 1900 1900 7500 7500 Total Costs 7500 7500 S 56500 5 62100 67700 (b) Prepare a budget report for June roman S 73300 (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable co CRANE 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 > > >