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 2010.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 (????)

NOTE: fill the expectation variable cost per unit range between (0.10 cent TO 1 $).

Annual Fixed Costs: Supervision $42,000; Depreciation 18,000; Insurance 12,000; Rent 24,000.

The master overhead budget was prepared on the expectation that 480,000 direct labor hours will be worked during the year. In June, 42,000 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variableper direct labor hour: Indirect labor (????), Indirect materials (????), Factory utilities (???), and Factory repairs (????).

NOTE: fill the actual costs variable cost per unit range between (0.10 TO 0.60 cent $) then start to answer the report.

Instructions

(a) Prepare monthly manufacturing overhead flexible budget for the year ending December 31, 2010, assuming production levels range from 50,000 to 70,000 direct labor hours. Use increments of 5,000 direct labor hours?

(b) Prepare budget report for June comparing actual results with budget data based on the flexible budget?

(c) Were costs effectively controlled? Explain?

(d) State the formula for computing the total budgeted costs for Zelmer Company?

(e) Prepare the flexible budget, showing total budgeted costs at 45,000 and 55,000 direct labor hours. Use increments of 5,000 direct labor hours on the horizontal axis and increments of $10,000 on the vertical axis?

(F) Compute the ROI for following Data: Sale 400000; Variable cost 320000; Controllable fixed cost 40800 and Average operating assets 280000. Compare the result and explain of ROI if increase the sale 20%?