Flexible Budget

In an attempt to improve budgeting, the controller for Engersol, Inc., has developed a flexible budget for overhead costs. Engersol, Inc., makes two types of products, commercial floor cleaners and

household floor cleaners. The company expects to produce $300,000$ units of the commercial cleaner and $120,000$ units of the household cleaner during the coming year. The commercial cleaner requires

$0\mathrm{.}04$ direct labor hour per unit, and the household cleaner requires $0\mathrm{.}06.$ The controller has developed the following cost formulas for each of the four overhead items:

Cost Formula

At the end of the year, Engersol, Inc., actually produced $305,000$ units of the commercial cleaner and $120,000$ of the deluxe model. The actual overhead costs incurred were:

Required:

Prepare a performance report for the period. If there is no variance, enter $"$O$"$ for the amount and select $"$NA$"$ in the last column.

Engersol, Inc.

Performance Report

For the Year Ended December $31$