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 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 $0.44 Variable costs Indirect labor Indirect materials Factory utilities Factory repairs 0.54 Supervision Depreciation Insurance $42,000 19,080 13,920 22,920 0.34 0.24 Rent The master overhead budget was prepared on the expectation that 475,900 direct labor hours will be worked during the year. In June, 39,200 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 materials $0.51, factory utilities $0.36, and factory repairs $0.29. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 37,300 to 51,400 direct labor hours. Use increments of 4,700 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 $ A (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 NO Budget Actual Costs n $ $ $ $ $ $ State the formula for computing the total budgeted costs for the Ironing Department. (Round variable cost per unit to 2 decimal places, e.g. 1.55.) The formula is total fixed costs $ + variable costs of $ per direct labor hour. e Textbook and Media