Sheffield Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2022. 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 $0.41 Supervision $47,640 Indirect materials 0.54 Depreciation 15,480 Factory utilities Factory repairs 0.34 Insurance 0.24 Rent 12,120 25,440 The master overhead budget was prepared in the expectation that 482.900 direct labor hours will be worked during the year. In June, 39,100 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.44, indirect materials $0.53, factory utilities $0.37, and factory repairs $0.29. Fixed: same as budgeted. (a) & (b) Your answer is partially correct. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2022, assuming production levels range from 38,500 to 52,900 direct labor hours. Use increments of 4,800 direct labor hours. (List variable costs before fixed costs.) Activity Level SHEFFIELD COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2022 Direct Labor Hours 38500 Variable Costs 43300 48100 Factory Utilities 13090 14722 16354 Factory Repairs 9240 10392 11544 Total Variable Costs 58905 66249 73593 Fixed Costs Supervision 47640 47640 47640 Depreciation 15480 15480 15480 Insurance Rent 12120 12120 12120 25440 Total Fixed Costs 100680 Total Costs 25440 25440 100680 100680 159585 $ 166929 174273 Direct Labor Hours Budget 39100 Variable Costs Indirect Labor SHEFFIELD COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Year Ended June 30.2022 Actual Costs 39100 16031 $ 17204 1173 Indirect Materials 3 21114 Factory Utilities 13294 20723 14467 1173 Dif Fa Unf Neithe nor U 391 Factory Repairs 9384 11339 1955 Total Variable Costs 59823 63733 3910 i Fixed Costs Supervision 47640 47640 Depreciation 15480 15480 Insurance Rent 12120 12120 25440 Total Fixed Costs 100680 Total Costs 25440 100680 i 160503 $ 164413 3910