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. Rate per Direct Labor Hour Annual Fixed Costs Variable costs Indirect labor Indirect materials Factory utilities Factory repairs $44,040 19,200 14,640 25,080 $0.44 Supervision 0.54 Depreciation 0.34 Insurance 0.24 Rent The master overhead budget was prepared on the expectation that 476,600 direct labor hours will be worked during the year. In June, 45,300 direct labor hours were worked. At that level of activity, actual costs were as shown below Variable-per direct labor hour: indirect labor $0.48, indirect materials $0.53, factory utilities $0.38, and factory repairs $0.29 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 levels range from 35,200 to 52,000 direct labor hours. Use increments of 5,600 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Overhead Flexible Budget For the Year 2017 Activity Level Activity Level 35,200 40800 46400 52000 Variable Costs Indirect Labor 16896 19584 22272 24960 Indirect Materials 8954.88 10379.52 11804.16 13228.8