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		Rate per Direct Labor Hour		Annual Fixed Costs
Indirect labor		$0.42		Supervision		$44,160
Indirect materials		0.53		Depreciation		18,960
Factory utilities		0.31		Insurance		16,560
Factory repairs		0.21		Rent		27,720

The master overhead budget was prepared on the expectation that 475,300 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. Variableper direct labor hour: indirect labor $0.44, indirect materials $0.52, factory utilities $0.34, and factory repairs $0.25. Fixed: same as budgeted.

(a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 41,300 to 56,900 direct labor hours. Use increments of 5,200 direct labor hours. (List variable costs before fixed 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.)

(c) 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.