Chaos Manufacturing had the following financial information for the year ended December $312023$:

Inventory Balances: Beginning Ending

Work in Progress $ $40,000$ $ $60,000$

Finished Goods $ $45,000$ $ $77,000$

Raw Materials $ $40,000$ $ $20,000$

During the year, the budgeted and actual costs were as follows:

Note Budget Actual

Raw Materials $1200,000$ See note$1$

Labour $2440,000418,000$

Depreciation Factory Equipment $72,00076,000$

Depreciation Office Equipment $24,00024,000$

Building Rent $3100,000100,000$

Maintenance $$ Factory Equipment $64,00055,000$

Utilities $$ Electrical $4200,000180,000$

Sales Commissions $40,00040,000$

Advertising $25,00025,000$

Shipping $520,00017,000$

Other information Budget Actual

Direct Labour Hours $20,00017,000$

Sales for the year were $$1,400,000$

Note $1$ Raw material

Budget: $90\%$ of raw materials are traced directly to specific jobs, and the remaining $10\%$ of raw materials are related to production but are untraceable to specific jobs

Actual: during the year $$20,000$ worth of materials were used in the production process but were untraceable. The rest of the materials used in the production process were directly traceable and applied to WIP as Direct Materials.

During the year $$180,000$ worth of raw materials were purchased

Note $2$ Labour

Budget:

Direct Labour $$200,000+$ Factory Salaries $$80,000+$ Sales and Marketing Salaries $$160,000=$ $$440,000$

Actual:

Direct Labour $$170,000+$ Factory Salaries $$85,000+$ Sales and Marketing Salaries $$163,000=$ $$418,000$

Note $3$ Building Rent

The building is all for the manufacturing facility

Note $4$ Utilities Electrical

For both budget and actual costs, $95\%$ of these costs are related to the factory, and $5\%$ of these costs are related to the administrative office.

Note $5$ Shipping

Budget: $20\%$ of budgeted shipping costs were for the delivery of raw materials to the manufacturing facility, and the remaining $80\%$ of the shipping costs are for the delivery of finished goods to customers.

Actual: All of the shipping costs were for the delivery of finished goods to customer.

Note $6$ Overhead

Overhead is applied based on Direct Labour costs