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 Supervision $0.44 0.52 Indirect materials Factory utilities Factory repairs $41,160 16,200 16,800 26,040 Depreciation Insurance Rent 0.31 0.22 The master overhead budget was prepared on the expectation that 475,800 direct labor hours will be worked during the year. In June, 39,800 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 $0.49, factory utilities $0.34, and factory repairs $0.27. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 44,200 to 57,100 direct labor hours. Use increments of 4,300 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 Direct Labor Hours 44200 48500 52800 57100 Variable Costs Indirect Labor 19448 21340 23232 $ 25124 Indirect Materials 22984 25220 27456 29692 Factory Utilities 13702 15035 16368 17701 Factory Repairs 9724 10670 11616 12562 Total Variable Costs 65858 72265 78672 85079 Fixed Costs Supervision 3430 3430 3430 3430 Depreciation 1350 1350 1350 1350 Insurance 1400 1400 1400 1400 Rent 2170 2170 2170 2170 Total Fixed Costs 8350 8350 8350 8350 Total Costs 74208 80615 87022 93429 (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 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $ $ 7 F