The company has three divisions which operate as profit centers. The Chocolate Division has prepared the budget for the coming year, 2021: The sales budget are expected for 12,000 unit. Assuming no beginning and ending inventory for raw material and finished good. The manufacturing cost equal to cost of good sold Budget Actual Qty Sales (unit) 12,000 10,000 Sales Direct material cost Direct labor cost Variable Manufacturing Overhead Indirect labor Indirect material Repairs 780,000.00 650,000.00 180,000.00 140,000.00 72,000.00 50,000.00 36,000.00 30,000.00 60,000.00 60,000.00 24,000.00 20,000.00 Utilities 48,000.00 30,000.00 Fixed Overhead Cost Supervisor Salary 55,000.00 50,000.00 Machine Depreciation 25,000.00 25,000.00 Equipment Rent 8,000.00 7,000.00 Allocated portion of Insurance for Factory 15,000.00 15,000.00 Allocated portion of Property Taxes for Factory Building 9,900.00 9,900.00 Gross Profit 532,900.00 247,100.00 436,900.00 213,100.00 Variable Sales and Administrative Expense Commission 24,000.00 25,000.00 Freight Out 24,000.00 16,000.00 Fixed Sales and Administrative Expense Administrative Salary 45,000.00 45,000.00 Advertising 12,000.00 Allocated portion of CEO Salary 25,000.00 10,000.00 25,000.00 Operating Income 130,000.00 117,100.00 121,000.00 92,100.00 There are indirect fixed cost that are allocated by Company for Chocolate Division: Insurance for factory, Property Taxess for factory building, CEO Salary. Insurance for factory and Property Taxess for factory building is allocated based on square meter used. CEO Salary is determined based on fixed percentage for Chocolate Division.