Question

Problem 10-2A-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 inted a budgetary control system for 2020. The following data were used in developing the master manufacturing overhead budget for the long Department, which is based on an activity index of direct labor hours BACK NEXT Rate per Direct Labor Hour Variable costs Indirect labor Indirect materials Factory utilities Factory repairs 0.51 0.32 0.24 Annual Fixed Costs Supervision 144.400 Depreciation 14.640 insurance 16.800 Rent 29.280 by study The master overhead budget was prepared on the expectation that 477,100 direct labor hours will be worked during the year. In June, 44.500 direct labore worked. At that level of activity, actual costs were as shown Variable per direct labor hour indirect labor 0.46. rectata 50, actoryt es 0.35, and factory repairs 0.28 Fixed: same as budgeted. (a) (b) (a) Prepare a monthly manufacturing overhead neile budget for the year ending December 31, 2020, herre product

Answer 1

Solution:

Zelmer Company
Ironing Department
Monthly Manufacturing overhead flexible budget
For the year 2020
Particulars	DLH - 39800	DLH - 44100	DLH - 48400	DLH - 52700
Direct labor hours	39800	44100	48400	52700
Variable Costs:
Indirect Labor	$17,114.00	$18,963.00	$20,812.00	$22,661.00
Indirect materials	$20,298.00	$22,491.00	$24,684.00	$26,877.00
Factory utilities	$12,736.00	$14,112.00	$15,488.00	$16,864.00
Factory repairs	$9,552.00	$10,584.00	$11,616.00	$12,648.00
Total variable costs	$59,700.00	$66,150.00	$72,600.00	$79,050.00
Fixed Costs:
Supervision	$3,700.00	$3,700.00	$3,700.00	$3,700.00
Depreciation	$1,220.00	$1,220.00	$1,220.00	$1,220.00
Insurance	$1,400.00	$1,400.00	$1,400.00	$1,400.00
Rent	$2,440.00	$2,440.00	$2,440.00	$2,440.00
Total Fixed Costs	$8,760.00	$8,760.00	$8,760.00	$8,760.00
Total Costs	$68,460.00	$74,910.00	$81,360.00	$87,810.00