Monty Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result,...

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Monty Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2022. 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 $0.41 Supervision $40,800 Indirect materials 0.54 Depreciation 16,440 Factory utilities 0.30 Insurance 14,400 Factory repairs 0.22 Rent 30,720 The master overhead budget was prepared in the expectation that 478,700 direct labor hours will be worked during the year. In June, 45,500 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.44, indirect materials $0.51, factory utilities $0.33, and factory repairs $0.27. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2022, assuming production levels range from 40,400 to 54,800 direct labor hours. Use increments of 4,800 direct labor hours. (List variable costs before fixed costs.) MONTY COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2022 (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) Total Variable Costs MONTY COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report Difference Favorable Unfavorabl Neither Favor Variable Costs Fixed Costs Budget Actual Costs nor Unfavora Direct Labor Hours Direct Materials Depreciation Factory Repairs Rent Indirect Labor Total Costs Direct Labor Supervision Indirect Materials Factory Utilities Insurance Total Fixed Costs Activity Level State the equation for computing the total budgeted costs for the Ironing Department. (Round variable cost per unit to 2 decimal places, e.g. 1.55.) The equation is total fixed costs $ +total variable costs of $ per direct labor hour. Monty Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2022. 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 $0.41 Supervision $40,800 Indirect materials 0.54 Depreciation 16,440 Factory utilities 0.30 Insurance 14,400 Factory repairs 0.22 Rent 30,720 The master overhead budget was prepared in the expectation that 478,700 direct labor hours will be worked during the year. In June, 45,500 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.44, indirect materials $0.51, factory utilities $0.33, and factory repairs $0.27. Fixed: same as budgeted. (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2022, assuming production levels range from 40,400 to 54,800 direct labor hours. Use increments of 4,800 direct labor hours. (List variable costs before fixed costs.) MONTY COMPANY Monthly Manufacturing Overhead Flexible Budget Ironing Department For the Year 2022 (b) Prepare a budget report for June comparing actual results with budget data based on the flexible budget. (List variable costs before fixed costs.) Total Variable Costs MONTY COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report Difference Favorable Unfavorabl Neither Favor Variable Costs Fixed Costs Budget Actual Costs nor Unfavora Direct Labor Hours Direct Materials Depreciation Factory Repairs Rent Indirect Labor Total Costs Direct Labor Supervision Indirect Materials Factory Utilities Insurance Total Fixed Costs Activity Level State the equation for computing the total budgeted costs for the Ironing Department. (Round variable cost per unit to 2 decimal places, e.g. 1.55.) The equation is total fixed costs $ +total variable costs of $ per direct labor hour.