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 Ironing Department, which is based on an activity index of direct labor hours. Variable costs Rate per Direct Labor Hour Annual Fixed Costs Indirect labor $0.40 Supervision $40,800 Indirect materials 0.50 Depreciation 14,400 Factory utilities 0.30 Insurance 12,000 Factory repairs 0.20 Rent 22,800 The master overhead budget was prepared on the expectation that 475,000 direct labor hours will be worked during the year. In June, 37,000 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variableper direct labor hour: indirect labor $0.42, indirect materials $0.49, factory utilities $0.32, and factory repairs $0.24. Fixed: same as budgeted. Partially correct answer. Your answer is partially correct. Try again. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2017, assuming production levels range from 35,000 to 47,000 direct labor hours. Use increments of 4,000 direct labor hours. (List variable costs before fixed costs.)