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oblem 24-2A lmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years....

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Accounting

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oblem 24-2A lmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 17. The folowing data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based oh an activity index of rect labor hours. Rate per Direct Labor Hour Variable costs ndirect labor ndirect materials Factory utilities Factory repairs Annual Fixed Costs 0.40 Supervision 0.50 Depreciation 0.30 Insurance 0.20 Rent $48,000 18,000 12,000 30,000 The master overhead budget was prepared on the expectation that 480,000 direct labor hours will be worked during the year. In June, 41,000 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 $0.48, factory utilities $0.32, and factory repairs $o.25 Fixed: same as budgeted (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2017, assuming production levels range from 35,000 to 50,000 direct labor hours. Use increments of 5,000 direct labor hours. (List variable costs before fixed costs.)

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