CALCULATOR PRINTER VERSION BACK Problem 10-2A a-b, d (Part Level Submission) (Video) 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. Th 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 0.55 0.30 0.24 Annual Fixed Costs Supervision $47,160 Depreciation 17,520 Insurance 16,560 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, 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 50.34, and factory repairs $0.28 Fixed: same as budgeted. (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.) ZELHER COMPANY Monthly Manufacturing Overtad Flexible budget nh For the Year 2020 weyyandt, Managerial Accounting, 8e Help System Announcements PRUNTER VERSION (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 Difference Favorable Unfavorable Neither Favorable nor Unfavorable