Flexible BudgetIn an attempt to improve budgeting, the controller for Engersol, Inc., has developed a flexible budget for overhead costs. Engersol, Inc., makes two types ofproducts, commercial floor cleaners and household floor cleaners. The company expects to produce 300,000 units of the commercial cleaner and 120,000units of the household cleaner during the coming year. The commercial cleaner requires 0.04 direct labor hour per unit, and the household cleaner requires0.06. The controller has developed the following cost formulas for each of the four overhead items:MaintenancePowerIndirect laborRentMaintenancePowerIndirect laborAt the end of the year, Engersol, Inc., actually produced 310,000 units of the commercial cleaner and 115,000 of the deluxe model. The actual overhead costs.incurred were:RentCost Formula$34,600+ $1.25 DLHRequired:$0.50 DLH$68,500+ $2.30 DLH$31,700$ 57,5009,710DLH for units producedProduction costs:117,14031,700Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column.Engersol, Inc.Performance ReportFor the Year Ended December 31ActualBudgetVariance000000QO?

Name: Flexible BudgetIn an attempt to improve budgeting, the controller for
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Description: Flexible BudgetIn an attempt to improve budgeting, the controller for Engersol, Inc., has developed a flexible budget for overhead costs. Engersol, Inc., makes two types ofproducts, commercial floor cleaners and household floor cleaners. The company

Flexible Budget-A flexible budget is one that responds to changes in volume and activity. Because it…

Business

Accounting

At the end of the year, Engersol, Inc., actually produced 310,000 units of the commercial cleaner and 115,000 of the deluxe model. The actual overhead costs incurred were: Maintenance Power Indirect labor Rent Required: $57,500 9,710 117,140 31,700 Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column. Engersol, Inc. Performance Report For the Year Ended December 31 Actual Budget Variance DLH for units produced Production costs:

At the end of the year, Engersol, Inc., actually produced 310,000 units of the commercial cleaner and 115,000 of the deluxe model. The actual overhead costs incurred were: Maintenance Power Indirect labor Rent Required: $57,500 9,710 117,140 31,700 Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column. Engersol, Inc. Performance Report For the Year Ended December 31 Actual Budget Variance DLH for units produced Production costs:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The standard direct labor cost for producing one unit of product is 4 direct labor hours at a standard rate of pay of $20. Last month, 15000 units were produced and 58500 direct labor hours were actually worked at a total cost of $1050000. The direct labor quantity variance was O $45000 favorable. O $30000 favorable. O $45000 unfavorable. O$30000 unfavorable.
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The Shatontola Co. Ltd is a single-product manufacturing company, which uses a marginal costing system for internal management purposes. The year-end external reports are converted to absorption costs. Variances are charged to the cost of goods sold. The following data refers to the years ended 31 December 2020 and 2021: 2020 2021 K K Sales price per unit 80 90 Standard marginal cost per unit: Direct materials 21 23 Direct Labour…
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