Angela Manufacturing Company provides the following fixed budget date for the year: Sales (20,000 units) $ 600,000 Cost of goods sold Direct Materials 200,000 Direct Labor 160,000 Supervisor's salary (fixed OH cost) 60,000 Depreciation on factory equipment (fixed OH straight-line) 40,000 Utilities (10,000 is variable) 30,000 Maintenance repair (variable OH cost) 10,000 500,000 Gross profit 100,000 Selling expense Shipping/packaging Sales salaries (fixed annual amount) General & administrate expense Office salaries Advertising expense Total expenses Income from operations The company's actual activity for the year follows: Sales (21,000 units) 8,000 32,000 40,000 10,000 2,000 12,000 $ 48,000 $ 651,000 Cost of goods sold Direct Materials 231,000 Direct Labor 168,000 Supervisor's salary (fixed OH cost) 73,500 Depreciation on factory equipment (fixed OH straight-line) 38,750 Utilities (18,750 is fixed) 26,750 Maintenance repair (variable OH cost) 12,000 550,000 Gross profit 101,000 Selling expense Shipping/packaging Sales salaries (fixed annual amount) General & administrate expense Advertising Office salaries Total expenses Income from operations 7,900 31,600 39,500 3,000 9,000 12,000 51,500 $ 49,500