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 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 Indirect labor Indirect materials Factory utilities Factory repairs Annual Fixed Costs $0.40 Supervision $42,240 18,360 15,600 29,520 0.50 Depreciation 0.34 Insurance 0.24 Rent 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 Fixed: same as budgeted 0.29 (a) & (b) (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 37,400 to 50,600 direct labor hours. Use increments of 4,400 direct labor hours. (List variable costs before fixed costs.) CRANE COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) CRANE COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended une 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs