what was the chair's division operating income for 2020? use normal costing and adjust misapplied MOH.

1 Budgeted information assembled at the start of 2020 2 3 4 S Plain Chair Customized Chair 60000 12000 50 10 3 hours 5 hours 60000 hrs 36000 hrs 120000 hrs 60000 hrs 20 ft 25 ft 6 7 8 9 10 11 Budgered production Number of chairs per batch Setup labor hours per batch Budgeted machine hours Budgeted direct manufacturing labor Budgeted feet of lumber per chair Budgeted Manufacturing Operating Overhead Costs Variable Costs Supplies Indirect Manufacturing Labor Power Maintenance Fixed Costs Depreciation Supervision Power Maintenance Budgeted Setup Overhead Costs 12 ^ $40,000 85000 35000 65000 13 14 $225,000 $605,000 15 16 17 85000 125000 90000 80000 18 19 $380,000 20 B E 80000 $380,000 23 A 19 Maintenance 20 Budgeted Setup Overhead Costs 21 Variable costs 22 Supplies Indirect Manufacturing Labor 24 Power 25 Inspection costs 26 Fixed Costs 27 Depreciation 8 Supervision 9 Power Engineering costs $65,000 35000 45000 60000 $610,000 $205,000 65000 120000 140000 $405,000 D B 1 2 3 4 5 6 7 8 9 Actual information for 2020 that can be traced directly to each product Plain Chair Customized chair Direct material used cost $720,000 $600,000 Feet of lumber per chair 20 feet 25 feet Lumber in inventory (12/31/20) 60000 feet 25000 feet Direct labor cost $1,800,000 $1,296,000 Direct labor hours 120000 hours 64800 Direct labor hours per chair 2 hours 5.4 hours Machine hours used in total 54000 hours 37200 hours Setup labor hours 3600 setup lab hrs 7200 setup lab hrs Number of batches 1200 1500 Chairs per batch 50 8 Total sales commissions $220,000 $96,000 Units produced 60000 12000 Units sold 55000 12000 Chairs in inventory(01/01/20) 6000@$48.50 each 0 Sales revenue $3,850,000 $2,640,000 10 11 12 13 14 15 16 17 18 C 2 3 4 5 Jan O 6 7 A 8 9 Additionally, the Chair division had the following actual costs in 2020 that were not directly traced to either product: Actual Manufactuing Overhead Costs 2020 Manufactruing Operations OH Setup Activity OH Month Machine Hours Cost Setup Hours Cost DL Hrs 6,643 $48,994 1.248 $61,923 14000 Feb 6,205 $48,412 1.107 $57,087 14600 Mar 7,854 554,900 1,046 $58,423 14400 Apr 6,745 $54,543 816 $54,265 14800 May 9,405 $55,900 713 552,158 15170 Jun 7,754 $61,477 652 $50.982 16600 Jul 7,413 $57,221 648 $49,113 16000 Aug 6,588 543,611 718 554,789 14700 Sep 8,564 $53,778 883 $56,864 16500 Oct 7,543 $58,003 920 359,023 16700 Nov 8,597 $51,321 1,014 $57,321 15800 Dec 7,889 $48,453 1,035 $56,453 15530 Total 91,200 $636,643 10000 $668,401 184800 10 3 11 12 13 14 O 16 17 10 19 20 Actual Annual Period Costs-2020 Advertising Expense 240,000 A 3 3 Actual Annual Period Costs-2020 Advertising Expense Sales department salaries Selling and administration deprciation 240,000 350,000 80,000 1 2 1 Budgeted information assembled at the start of 2020 2 3 4 S Plain Chair Customized Chair 60000 12000 50 10 3 hours 5 hours 60000 hrs 36000 hrs 120000 hrs 60000 hrs 20 ft 25 ft 6 7 8 9 10 11 Budgered production Number of chairs per batch Setup labor hours per batch Budgeted machine hours Budgeted direct manufacturing labor Budgeted feet of lumber per chair Budgeted Manufacturing Operating Overhead Costs Variable Costs Supplies Indirect Manufacturing Labor Power Maintenance Fixed Costs Depreciation Supervision Power Maintenance Budgeted Setup Overhead Costs 12 ^ $40,000 85000 35000 65000 13 14 $225,000 $605,000 15 16 17 85000 125000 90000 80000 18 19 $380,000 20 B E 80000 $380,000 23 A 19 Maintenance 20 Budgeted Setup Overhead Costs 21 Variable costs 22 Supplies Indirect Manufacturing Labor 24 Power 25 Inspection costs 26 Fixed Costs 27 Depreciation 8 Supervision 9 Power Engineering costs $65,000 35000 45000 60000 $610,000 $205,000 65000 120000 140000 $405,000 D B 1 2 3 4 5 6 7 8 9 Actual information for 2020 that can be traced directly to each product Plain Chair Customized chair Direct material used cost $720,000 $600,000 Feet of lumber per chair 20 feet 25 feet Lumber in inventory (12/31/20) 60000 feet 25000 feet Direct labor cost $1,800,000 $1,296,000 Direct labor hours 120000 hours 64800 Direct labor hours per chair 2 hours 5.4 hours Machine hours used in total 54000 hours 37200 hours Setup labor hours 3600 setup lab hrs 7200 setup lab hrs Number of batches 1200 1500 Chairs per batch 50 8 Total sales commissions $220,000 $96,000 Units produced 60000 12000 Units sold 55000 12000 Chairs in inventory(01/01/20) 6000@$48.50 each 0 Sales revenue $3,850,000 $2,640,000 10 11 12 13 14 15 16 17 18 C 2 3 4 5 Jan O 6 7 A 8 9 Additionally, the Chair division had the following actual costs in 2020 that were not directly traced to either product: Actual Manufactuing Overhead Costs 2020 Manufactruing Operations OH Setup Activity OH Month Machine Hours Cost Setup Hours Cost DL Hrs 6,643 $48,994 1.248 $61,923 14000 Feb 6,205 $48,412 1.107 $57,087 14600 Mar 7,854 554,900 1,046 $58,423 14400 Apr 6,745 $54,543 816 $54,265 14800 May 9,405 $55,900 713 552,158 15170 Jun 7,754 $61,477 652 $50.982 16600 Jul 7,413 $57,221 648 $49,113 16000 Aug 6,588 543,611 718 554,789 14700 Sep 8,564 $53,778 883 $56,864 16500 Oct 7,543 $58,003 920 359,023 16700 Nov 8,597 $51,321 1,014 $57,321 15800 Dec 7,889 $48,453 1,035 $56,453 15530 Total 91,200 $636,643 10000 $668,401 184800 10 3 11 12 13 14 O 16 17 10 19 20 Actual Annual Period Costs-2020 Advertising Expense 240,000 A 3 3 Actual Annual Period Costs-2020 Advertising Expense Sales department salaries Selling and administration deprciation 240,000 350,000 80,000 1 2