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.

B. Prepare a budget report for June comparing actual results with budget data based on the flexible budget.

7 SUNDAY C