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 $$
Power $
Indirect labor $$
Rent $
At the end of the year, Engersol, Inc., actually produced units of the commercial cleaner and of the deluxe model.
The actual overhead costs incurred were:
Maintenance $
Power
Indirect labor
Rent
Required:
Prepare a performance report for the period. If there is no variance, enter for the amount and select NA in the last column.
Engersol, Inc.
Performance Report
For the Year Ended December
Actual Budget Variance
DLH for units produced
Production costs:
Total
