Problem 10-26 Flexible Budget and Overhead Performance Report [LO4, LO5, LO6, LO7]

Groschl Company has had great difficulty in controlling manufacturing overhead costs. At a recent convention, the president heard about a control device for overhead costs known as a flexible budget, and he has hired you to implement this budgeting program in Groschl Company. After some effort, you have developed the following cost formulas for the company