Zelmer Company manufactures tableclothes. Sales have grown rapidly over the past two years. As a result, the president has installed a budgetary control system for 2017. The following days were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an acitivity index of direct labor hours.

The master overhead budget was prepared on the expectation that 479,200 direct labor hours will be worked during the year. In JUNE, 46,100 direct labor hours were worked. At that level of activity, actually costs were as shown below.

Variable per direct labor hour: indirect labor $0.44, indirect materials $0.54, factory utilities $0.35, and factory repairs $0.24.

Fixed:same as budgeted.

A. Prepare a monthly manufacturing overhead flexible budget for the year ending December 31,2017, assuming production levels range from 35000 to 52400 direct labor hours. Use increments of 5800 direct labor hours.

B. Prepare a budget report for JUNE comparing actua results with budget data based on the flexible budget.

C. State the formula for computing the total budgeted costs for the Ironing Department.

SUNDAY npo -4 rf C