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 2017. 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.

(a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2017, assuming production levels range from 39,600 to 53,700 direct labor hours. Use increments of 4,700 direct labor hours. (List variable costs before fixed 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.)

(c)

Variable costs Indirect labor Indirect materials Factory utilities Factory repairs Rate per Direct Labor Hour $0.43 0.51 Fixed: same as budgeted. Annual Fixed Costs 0.20 Supervision $41,040 Depreciation 16,080 13,800 0.30 Insurance Rent 29,520 The master overhead budget was prepared in the expectation that 478,700 direct labor hours will be worked during the year. In June, 38,800 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.47, indirect materials $0.49, factory utilities $0.32, and factory repairs $0.25. + + + + + + # + + # # + + + ZELMER COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2017 + (7 AP 47 ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2017 Budget Actual Costs 1000 65 Difference Favorable Unfavorable Neither Favorable nor Unfavorable AP AP AP 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 = $ LINK TO TEXT + total variable costs of $ Click if you would like to Show Work for this question: per direct labor hour. Open Show Work VIDEO: SIMILAR