Flawless Inc manufactures chairs made of mahogany and is considering using Absorption Costing to report its budgeted profit. DM $$10,$ DL $$15,$ Total variable cost per chair $$25$ Additional information $-$Chairs are sold at $$45$ per chair Fixed production overheads are budgeted to be $$210,000$ per month and are absorbed on an activity level of $70000$ chairs per month. Sales are expected to be $70000$ chairs for the month and production will be $84000$ chairs. Fixed selling costs of $$105,000$ per month will need to be included in the budget. Variable selling cost of $$2\mathrm{.}00$ per chair and there are no opening stocks. Prepare the budgeted income statement for a month using absorption costing. Identify $3$ practical problems a management accountanyt might encounter in separating costs into their fixed and variable components.