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. $43,680 Variable costs Indirect labor Indirect materials Factory utilities Factory repairs Rate per Direct Labor Hour Annual Fixed Costs $0.40 Supervision Depreciation 17,160 0.34 Insurance 12,480 0.24 Rent 23,040 0.51 The master overhead budget was prepared on the expectation that 484,200 direct labor hours will be worked during the year. In June, 38,600 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.43, indirect materials $0.50, factory utilities $0.38, and factory repairs $0.29. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 42,400 to 57,400 direct labor hours. Use increments of 5,000 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 x Factory Repairs Ix Total Variable Costs Fixed Costs x Supervision Depreciation X Insurance x 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 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Direct Labor Hours Variable Costs Indirect Labor Indirect Materials Factory Utilities Factory Repairs Total Variable Costs Fixed Costs intiii niiii blodce blood Supervision Depreciation Insurance - Rent Total Fixed Costs Total Costs x Your answer is incorrect. Try again. 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