Vaughn 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 Annual Fixed Costs $0.41 Supervision $40,800 Variable costs Indirect labor Indirect materials Factory utilities Factory repairs 0.54 Depreciation 16.440 0.30 Insurance 14,400 0.22 Rent 30,720 The master overhead budget was prepared on the expectation that 478,700 direct labor hours will be worked during the year. In June, 45,500 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 $0.51, factory utilities $0.33, and factory repairs $0.27. Fixed: same as budgeted. Activity Level Direct Labor Hours Variable Costs Indirect Labor $ Indirect Materials Factory Utilities Factory Repairs Total Variable Costs Fixed Costs Supervision Depreciation Insurance Rent Total Fixed Costs Total Costs Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 1 $ $ $ (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) VAUGHN COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 Dif Fa Unf Neithe nor UI Budget Actual Costs Activity Level Direct Labor Hours Variable Costs $ Indirect Labor Indirect Materials Factory Utilities Factory Repairs Total Variable Costs Supervision 0 Depreciation Insurance 0 Rent Total Fixed Costs Total Costs $ Neither Favorable nor Unfavorable $ Unfavorable Unfavorable Unfavorable 0 Neither Favorable nor Unfavorable 0 Neither Favorable nor Unfavorable 0 Neither Favorable nor Unfavorable 0 Neither Favorable nor Unfavorable 0 Neither Favorable nor Unfavorable Unfavorable