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		$0.40		Supervision		$42,720
Indirect materials		0.52		Depreciation		18,360
Factory utilities		0.32		Insurance		16,800
Factory repairs		0.20		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. Variableper 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)

(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