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 12,000 780,000.00 180,000.00 72,000.00 Actual 10,000 650,000.00 140,000.00 50,000.00 Qty Sales (unit) Sales Direct material cost Direct labor cost Variable Manufacturing Overhead Indirect labor Indirect material Repairs Utilities Fixed Overhead Cost Supervisor Salary Machine Depreciation Equipment Rent Allocated portion of Insurance for Factory Allocated portion of Property Taxes for Factory Building 36,000.00 60,000.00 24,000.00 48,000.00 30,000.00 60,000.00 20,000.00 30,000.00 55,000.00 25,000.00 8,000.00 50,000.00 25,000.00 7,000.00 15,000.00 15,000.00 9,900.00 9.900.00 532,900.00 247,100.00 436,900.00 213,100.00 24,000.00 24,000.00 25,000.00 16,000.00 Gross Profit Variable Sales and Administrative Expense Commission Freight Out Fixed Sales and Administrative Expense Administrative Salary Advertising Allocated portion of CEO Salary 45,000.00 12,000.00 25,000.00 45,000.00 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 Building 9,900.00 9,900.00 532,900.00 247,100.00 436,900.00 213,100.00 24,000.00 24,000.00 25,000.00 16,000.00 Gross Profit Variable Sales and Administrative Expense Commission Freight Out Fixed Sales and Administrative Expense Administrative Salary Advertising Allocated portion of CEO Salary 45,000.00 12,000.00 25,000.00 45,000.00 10,000.00 25,000.00 130,000.00 117,100.00 121,000.00 92,100.00 Operating Income 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. Prepare responsibility report using Flexible Budget for Chocolate Division as Profit Center Budget 650,000.00 F (UF) Diff (Actual-Bdgt) Actual 650,000.00 330,000.00 41,000.00 B D Sales Variable Cost Cost of Good Sold Sales and Administrative Expense Total Variable Cost Contribution Margin Controllable Fixed Cost Cost of Good Sold Sales and Administrative Expense Total controllable fixed cost Controllable Margin Tim 82,000.00 55,000.00 G H
