The controller for Shiny-Brite, a division of Idacal, Inc., has been instructed to develop a flexible budget for overhead costs. Shiny-Brite has two cleaning products, Glass-Clo and TileB-Clean that use common raw materials in different proportions. The company expects to produce 500,000 32-ounce bottles of each product during the coming year. Glass-Glo re¬

quires 0.10 direct labor hours per bottle, and Tile-B-Clean requires 0.25. The controller has developed the following cost formulas for each of the four overhead items:

At the end of the year, Shiny-Brite actually produced 550,000 bottles of Glass-Glo and 500,000 of Tile-B-Clean. The actual overhead costs incurred were:

Required:
1. Prepare an overhead budget for the expected activity level for the coming year.
2. Prepare an overhead budget that reflects production that is 10% higher than expected (for both products) and a budget for production that is 20% lower than expected.
3. Prepare a performance report for the period.

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Maintenance Power Indirect labor Rent Cost Formula $10,000+ 0.2 DLH 0.5 DLH $43,600 +1.5 DLH $24,000