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 400,000 units of the commercial cleaner and 150,000 units of the household cleaner during the coming year. The commercial cleaner requires 0.05 direct labor hour per unit, and the household cleaner requires 0.08. The controller has developed the following cost formulas for each of the four overhead items: Cost Formula Maintenance $34,600 + $1.25 DLH Power $0.50 DLH Indirect labor $68,500+ $2.30 DLH Rent $31,700 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 Per DLH Budgeted direct labor hours 32,000 Variable costs: Maintenance Power