Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 1,000 canoes, 1,500 canoes, and 2,000 canoes. Canoes sell for $650 each. The standard variable cost information for a canoe is as follows. Direct materials Direct labor Variable overhead Utilities Indirect material Indirect labor Total $ 225 110 Annual fixed overhead cost is expected to be: Rent 15 45 30 $ 425 Maintenance $ 45,000 Depreciation Insurance Total 36,000 28,000 57,000 $ 166,000 Prepare a flexible budget for the three sales levels under consideration.
Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 1,000 canoes, 1,500 canoes, and 2,000 canoes. Canoes sell for $650 each. The standard variable cost information for a canoe is as follows. Direct materials Direct labor Variable overhead Utilities Indirect material Indirect labor Total $ 225 110 Annual fixed overhead cost is expected to be: Rent 15 45 30 $ 425 Maintenance $ 45,000 Depreciation Insurance Total 36,000 28,000 57,000 $ 166,000 Prepare a flexible budget for the three sales levels under consideration.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three
different sales targets: 1,000 canoes, 1,500 canoes, and 2,000 canoes. Canoes sell for $650 each. The standard variable cost
information for a canoe is as follows.
Direct materials
Direct labor
Variable overhead
Utilities
Indirect material
Indirect labor
Total
$ 225
110
Annual fixed overhead cost is expected to be:
Rent
15
45
30
$ 425
Maintenance $ 45,000
Depreciation
36,000
Insurance
28,000
57,000
$ 166,000
Total
Prepare a flexible budget for the three sales levels under consideration.
Transcribed Image Text:$
Unit
$
$
$
1,000
Unit
$
1,500
1,000
$
$
$
2,000
1,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education