Sheridan Company manufactures tablecloths. Sales have grown rapidly over the past $2$ years. As a result, the presidenthas installed a

budgetary control system for $2020.$ The following data were used in developing the master manufacturingoverhead budget for the

Ironing Department, which is based on an activity index of directlabor hours

The master overhead budget was prepared on the expectation that $478,700$ direct labor hours will be worked during the year. In

June, $38,800$ direct labor hours were worked. At that level of activity, actual costs were as shown below.

Variable$-$perdirect laborhour: indirectlabor $$0\mathrm{.}47,$ indirect materials $$0\mathrm{.}49,$ factory utilities $$0\mathrm{.}32,$ and factory repairs $$0\mathrm{.}25.$

Fixed: same as budgeted.

$$a$$ & $$b$)$

$($a$)$ Prepare a monthly manufacturing overhead flexible budget for the year ending December $31,2020,$ assuming production

levels range from $39,600$ to $53,700$ direct labor hours. Use increments of $4,700$ directlabor hours. flist variable costs befofor fixed

costs.$)$

SHERIDAN COMPANY

Monthly Manufacturing Overhead Flexible Budget

Ironing Department

For the Year $2020$

$($b$)$ Preparea budget report for June comparing actual results with budget data based on the flexible budget. $\{$list variable costs

before fixedcosts.$)$

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