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 140,000 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: Maintenance Power Indirect labor Rent Required: Cost Formula $34,600 +$1.25 DLH $0.50 DLH $68,500+ $2.30 DLH $31,700 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 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products). 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 Prepare an overhead budget for production that is 20 percent lower than expected. 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 3. Which of the four data analytic types-descriptive, diagnostic, predictive, or prescriptive-is being used in creating the three flexible budgets? (See Exhibits 2.5 and 2.6, pp. 37, 40, for a review of data analytic types.) The flexible budgets are used under various sales scenarios. to determine how well the company will do