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, Rate per Direct Variable costs Labor Hour Annual Fixed Costs Indirect labor $0.43 Supervision $47.160 Indirect materials 0.55 Depreciation 17.520 Factory utilities 0.30 Insurance 16,560 Factory repairs 0.24 Rent 28,560 The master overhead budget was prepared on the expectation that 477,300 direct labor hours will be worked during the year. In June 10,800 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable--per direct labor hour: indirect labor $0,45, Indirect materials $0.54, factory utilities $0.34, and factory repairs $0.28. Fixed: same as budgeted Your answer is partially correct. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 36,400 to 54,400 direct labor hours. Use increments of 6.000 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 v Indirect Labor Indirect Materials IONI Factory Utilities Factory Repairs Total Variable Costs V The master overhead budget was prepared on the expectation that 477,300 direct labor hours will be worked during the year. In June 40.800 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour-indirect labor 50.45, Indirect materials $0.54, factory utilities $0.34, and factory repairs $0.28. Fixed: same as budgeted Your answer is partially correct. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 36.400 to 54.400 direct labor hours. Use increments of 6,000 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 IDE Factory Utilities Factory Repairs Total Variable Costs Fixed Costs Supervision Depreciation Insurance Rent Total Fixed Costs Total Costs The master overhead budget was prepared on the expectation that 477,300 direct labor hours will be worked during the year. In June, 40,800 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour indirect labor $0.45, indirect materials $0.54, factory utilities $0.34, and factory repairs $0.28 Fixed same as budgeted. Your answer is partially correct (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 36,400 to 54,400 direct labor hours. Use increments of 6,000 direct labor hours. (List variable costs before fixed costs.) ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2020 110 (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 D F: Un Neith nor Budget Actual Costs Direct Labor Hours Variable Costs Indirect Labor Indirect Materials Factory Utilities Factory Repairs Total Variable Costs III III Fixed Costs Supervision Depreciation i Insurance Rent Total Fixed Costs Total Costs $ e Textbook and Media VariableCosts Indirect labor Indirect Materials Factory Utilities v Factory Repairs Total Variable costs Fixed Costs Supervision Depreciation Insurance Rent Total Fixed Costs Total Costs e Textbook and Media x Your answer is incorrect State the formula for computing the total budgeted costs for the trening Department. (Round variable cost per unit to 2 decimal places, ex. 1.550 The formula is total fixed costs variable costs of per direct labor hour