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Current Attempt in Progress Ayayai Company manufactures tablecloths. Sales have grown rapidly over the past...

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Accounting

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Current Attempt in Progress Ayayai Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2025 . 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 in the expectation that 484,800 direct labor hours will be worked during the year, in June, 40,400 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable-per direct labor hour: indirect labor $0.43, indirect materials $0.52, factory utilities $0.33, and factory repairs $0.24. Fixed: same as budgeted. AYAYAI COMPANY Ironing Department Manufacturing Overhead Flexible Budget Report Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable 5 5 5

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