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Question 10 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 Rate per Direct Variable costs Labor Hour Annual Fixed Costs $46,800 Indirect labor $0.42 Supervision Indirect materials Depreciation 16,920 0.55 Factory utilities 0.32 Insurance 14,760 Factory repairs 28,080 0.20 Rent The master overhead budget was prepared on the expectation that 479,200 direct labor hours will be worked during the year. In June, 46,1000 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 $0.54, factory utilities $0.35, and factory repairs $0.24. Fixed: same as budgeted Insurance Rent Total Fixed Costs Total 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.) ZELMER COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report For the Month Ended June 30, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable Activity Level Direct Labor Hours Variable Costs $ Indirect Labor Indirect Materials Factory Utilities Factory Repairs Fixed Costs Supervision Depreciation Insurance Rent Total Fixed Costs Total Costs $ By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 1 used

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