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. Variable costs Indirect labor Indirect materials Factory utilities Factory repairs Rate per Direct Labor Hour 50.40 0.52 0.32 0.20 Annual Fixed Costs Supervision $42,720 Depreciation 18,360 Insurance 16,800 Rent 27.480 The master overhead budget was prepared on the expectation that 482.500 direct labor hours will be worked during the year. In June 42.400 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.42, indirect materials $0.50, factory utilities $0.35, and factory repairs $0.25. Fixed: same as budgeted (a) & (b) Your answer is partially correct. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 38.400 to 54.600 direct labor hours. Use increments of 5.400 direct labor hours. (List variable costs before fixed costs.) (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 38.400 to 54.600 direct labor hours. Use increments of 5.400 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Activity Level Direct Labor Hours Variable Costs Indirect Labor Indirect Materials Factory Utilities Factory Repairs Total Variable Costs Fixed Costs Supervision Depreciation Insurance Rent Total Fixed Costs Total Costs (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 Budget Actual Costs Direct Labor Hours Variable Costs Indirect Labor Indirect Materials TT Factory Utilitles Factory Repairs Total Variable Costs Fixed Costs III IN Supervision Depreciation Insurance Rent Total Fixed Costs Total Costs