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 150,000 units of the household cleaner during the coming year. The commercial cleaner requires 0.10 direct labor hour per unit, and the household cleaner requires 0.16. The controller has developed the following cost formulas for each of the four overhead items: Maintenance Power Cost Formula $34,300+ $1.25 DLH $0.50 DLH Indirect labor Rent $68,200+ $2.30 DLH $31,100 Required: 1. Prepare an overhead budget for the expected activity level for the coming year. Engersol, Inc. Overhead Budget For the Year Ended December 31 Budgeted direct labor hours. Variable costs: Maintenance Power Indirect labor Total variable costs Fixed costs: Maintenance Indirect labor Rent Total fixed costs Total overhead costs Per DLH 100 |000 000 000