4D: ZELMER:

Note: Need Answer for D only. Last question

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. The master overhead budget was prepared on the expectation that 476,600 direct labor hours will be worked during the year. In June, 45,300 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.48, indirect materials $0.53, factory utilities $0.38, and factory repairs $0.29. Fixed: same as budgeted. (a) & (b) (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31,2020 , assuming production levels range from 35,200 to 52,000 direct labor hours. Use increments of 5,600 direct labor hours. (List variable costs before fixed costs.) (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31,2020 , assuming production levels range from 35,200 to 52,000 direct labor hours. Use increments of 5,600 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 Budget Actual Costs Variable Costs \begin{tabular}{l} \hline Indirect Labor v \\ \hline Indirect Materials \\ \hline \end{tabular} \( \$ \longdiv { 1 } \) Direct Labor Hours 45,300 Factory Utilities \begin{tabular}{|l|l|} \hline 15,402 & i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 17.214 & i \\ \hline \end{tabular} Factory Repairs \begin{tabular}{|l|l|} \hline 10,872 \\ \hline \end{tabular} Fixed Costs Supervision Total Variable Costs v \begin{tabular}{|l|l|} \hline 24,009 & i \\ \hline \end{tabular} Depreciation \begin{tabular}{|l|l|} \hline 3,670i \\ \hline \end{tabular} \begin{tabular}{|l|} \hline \hline \end{tabular} Insurance \begin{tabular}{|l|l|} \hline 1220 & i \\ \hline \end{tabular} Rent \( \frac{\text { Actual Costs }}{\frac{4}{45,300}} \stackrel{45,300}{\hline} \frac{}{4} \) Unfavorable v 3,670i Unfavorable Neither Favorable nor Unfavorable v Neither Favorable nor Unfavorable v 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 $ + variable costs of $ per direct labor hour