Zelmer company mamufactures tablecloths. sales have grown rapidly over the past 2 years. as a result the president has installed a budgeted control system for 2017. the following data were used to master manufacturing overhead budget for the ironing department. Indirect labor .43 indirect materials .52 factory utilities .33 factory repairs .21. supervison 45,120 depretiation 18,000 insurence 17,640 rent 27,720.

1. prepare a monthly manufacturing overhead flexible budget. levels range from 38,700 to 53,400 with increments of 4,900.

2. prepare a budget report for june comparing actual results with budget data based on the flexible budget.

3. state the formula for computing the total budgeted costa for the ironing department.

the formula is $________ + total variable costs of $_______ per direct labor hour.

ment CALCULATOR PULL SCREEN PRINTER VERSION NET. Problem 22-2A (Part Level Submission) 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 2017. The following data were used in developing the master manufacturing overhead budget for the froning Department, which is based on an activity index of direct labor hours, Variable costs indirect labor Indirect materials Factory Utilities Factory repairs Rate per Direct Labor Hour Annual Pixed Costs $0.4) Supervision $45,120 0.52 Depreciation 18,000 0.33 Injurance 17,640 0.21 Rent 27,720 The master overhead budget was prepared on the expectation that 480,500 direct labor hours will be worked during the year. In June, 46,500 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable per direct labor hour: indirect labor $0.47, indirect materiais $0.50, factory writies $0.37, and factory repairs $0.25 Fixed same as budgeted (a) (b) Your answer is partially correct. Try again (a) Prepare a monthly manufacturing overhead Rexble budget for the year ending December 31, 2017, assuming production levels range from 38,700 to 53.400 direct labor hours. Use increments of 4,900 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2017 iment Indirect Labor 16641.00 18748.00 20855.00 22962.00 Indirect Materials 20124.00 22672.00 25220.00 27768.00 Factory Utilities 12771.00 14388.00 16005.00 17622.00 Factory Repairs 8127.00 9156.00 10185.00 11214.00 Total Variable Costs 57663.00 64964.00 72265.00 79566.00 Fixed Costs Supervision 45120.00 45120.00 45120.00 45120.00 x Depreciation 18000.00 18000.00 18000.00 18000.00 X Insurance 17640.00 17640.00 17640.00 17640.00 x Rent 27720.00 27720.00 27720.00 27720.00 X Total Fixed Costs 108480.00 108480.00 108480.00 108480.00 x Total Costs 166143.00 173444.00 180745.00 188046.00 ent CALCL Direct Labor Hours 480800 480800 Variable Costs Indirect Labor 225976 225976 19232 Unfavorable Indirect Materials 250016 240400 9616 Favorable X Factory Utilities 158664 177896 19232 Unfavorable Factory Repairs 100968 120200 19232 Unfavorable Total Variable Costs 716392 764472 48080 Unfavorable Fixed Costs 2 Supervision 45120.00 45120.00 0 Neither Favorable nor Unfavorable Depreciation 18000.00 18000.00 0 Neither Favorable nor Unfavorable Insurance 17640.00 17640.00 0 Neither Favorable nor Unfavorable 5. San Indirect Materials 250016 240400 9616 Favorable Factory Utilities 158664 177896 19232 Unfavorable X Factory Repairs 100968 120200 19232 Unfavorable X Total Variable Costs 716392 764472 48080 Unfavorable Fixed Costs Supervision 45120.00 45120.00 0 Neither Favorable nor Unfavorable Depreciation 18000.00 18000.00 0 Neither Favorable nor Unfavorable x Insurance 17640.00 17640.00 0 Neither Favorable nor Unfavorable LOGO X Rent 27720.00 27720.00 0 Neither Favorable nor Unfavorable x X Total Fixed Costs 108480.00 108480.00 0 Neither Favorable nor Unfavorable x Total Costs 824872 872952 48080 Unfavorable ent Problem 22-2A (Part Level Submission) Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installe in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direc Variable costs Indirect labor Indirect materials Factory utilities Factory repairs Rate per Direct Labor Hour Annual Fixed Costs $0.43 Supervision $45,120 0.52 Depreciation 18,000 0.33 Insurance 17,640 0.21 Rent 27,720 The master overhead budget was prepared on the expectation that 480,800 direct labor hours will be worked during the year. In actual costs were as shown below. Variable--per direct labor hour: Indirect labor $0.47, Indirect materials $0.50, factory utilities $0.37, and factory repairs $0.25. Fixed: same as budgeted. (a) & (b) Your answer is partially correct. Try again. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2017, assuming production level of 4,900 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2017