Zelmer Company manufactures tabledaths. 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 Indirect labor Indirect materials Factory utilities Factory repairs Rate per Direct Labor Hour $0.43 0.52 0.3) 0.21 Annual Fixed Costs Supervision 145,120 Depreciation 18,000 Insurance 17,640 Rent 27,720 The master overhead budget was prepared on the expectation that 480,000 direct labor hours will be worked during the year. In June, 46,500 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 50.50, factory utilities $0.37, and factory repairs $0.25. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020, assuming production levels range from 38,700 to 53,400 direct labor hours. Use increments of 4,900 direct labor hours. (List variable costs before and costs) ZELHER COMPANY Monthly Manufacturing Overhead Fledible Budget Ironing Department For the Year 2020 Activity Level For the Year 2020 Activity Level Direct Labor Hours TEL - - . (b) Prepare a budget for June comparing actual results with budget data based on the flexible budget. ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed a 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