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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
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 units of the commercial cleaner and units of the household cleaner during the coming year. The commercial cleaner requires direct labor hour per unit, and the household cleaner requires The controller has developed the following cost formulas for each of the four overhead items:
Cost Formula
Maintenance $ $ DLH
Power $ DLH
Indirect labor $ $ DLH
Rent $
Required:
Question Content Area
Prepare an overhead budget for the expected activity level for the coming year. Round your answers to the nearest cent, if required.
Engersol, Inc.
Overhead Budget
For the Year Ended December
Per DLH blank
Budgeted direct labor hours blank fill in the blank eafffb
blank
Variable costs:
Maintenance $fill in the blank eafffb
$fill in the blank eafffb
Power fill in the blank eafffb
fill in the blank eafffb
Indirect labor fill in the blank eafffb
fill in the blank eafffb
Total variable costs $fill in the blank eafffb
Fixed costs:
Maintenance $fill in the blank eafffb
Indirect labor fill in the blank eafffb
Rent fill in the blank eafffb
Total fixed costs fill in the blank eafffb
Total overhead costs $fill in the blank eafffb
Question Content Area
Prepare an overhead budget that reflects production that is percent higher than expected for both products Round your answers to the nearest cent, if required.
Engersol, Inc.
Overhead Budget
For the Year Ended December
Per DLH blank blank
Budgeted direct labor hours blank fill in the blank fdabcfb
blank
Variable costs:
Maintenance $fill in the blank fdabcfb
$fill in the blank fdabcfb
Power fill in the blank fdabcfb
fill in the blank fdabcfb
Indirect labor fill in the blank fdabcfb
fill in the blank fdabcfb
Total variable costs $fill in the blank fdabcfb
Fixed costs:
Maintenance $fill in the blank fdabcfb
Indirect labor fill in the blank fdabcfb
Rent fill in the blank fdabcfb
Total fixed costs fill in the blank fdabcfb
Total overhead costs $fill in the blank fdabcfb
Question Content Area
Prepare an overhead budget for production that is percent lower than expected.
Engersol, Inc.
Overhead Budget
For the Year Ended December
Per DLH blank blank
Budgeted direct labor hours blank fill in the blank ffbfc
blank
Variable costs:
Maintenance $fill in the blank ffbfc
$fill in the blank ffbfc
Power fill in the blank ffbfc
fill in the blank ffbfc
Indirect labor fill in the blank ffbfc
fill in the blank ffbfc
Total variable costs $fill in the blank ffbfc
Fixed costs:
Maintenance $fill in the blank ffbfc
Indirect labor fill in the blank ffbfc
Rent fill in the blank ffbfc
Total fixed costs fill in the blank ffbfc
Total overhead costs $fill in the blank ffbfc
Question Content Area
Which of the four data analytic typesdescriptive diagnostic, predictive, or prescriptiveis being used in creating the three flexible budgets? See Exhibits and pp for a review of data analytic types.
The flexible budgets are used
to determine how
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