QueSLUIT OF -/3 Wow Podcies Current Attempt in Progress 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 $47,040 Indirect materials 0.54 Depreciation 20,280 Factory utilities 0.30 Insurance 12,480 Factory repairs 0.23 Rent 30,000 The master overhead budget was prepared on the expectation that 482,200 direct labor hours will be worked during the year. In June, 43,100 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour indirect labor $0.42, indirect materials $0.51, factory utilities $0.33, and factory repairs $0.28. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 40,900 to 53,500 direct labor hours. Use increments of 4 200 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget MacBook Air Chapter 23 Homework - UUE MUNUA NOVEMBEAU Question 11 of 11 -/3 Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 $ MacBook Air Question 11 of 11 !!! ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 Difference Favorable Unfavorable Neither Favoral nor Unfavorab Budget Actual Costs $ MacBook Air (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 40,900 to 53,500 direct labor hours. Use increments of 4,200 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 $ Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Factory Repairs Factory Utilities Fixed Costs Indirect Labor Indirect Materials Insurance Rent Supervision Total Costs Total Fixed Costs Total Variable Costs Variable 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.) ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 D E Un Neith nor! Budget Actual Costs $ $ Activity Level Depreciation Direct Labor Direct Labor Hours Direct Materials Factory Repairs Factory Utilities Fixed Costs Indirect Labor Indirect Materials Insurance Rent Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs MacBook Air
