Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,830 canoes, 3,110 canoes, and 3,550 canoes. Canoes sell for $930 each. The standard variable cost information for a canoe is as follows. Direct materials $ 220 Direct labor 109 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 454 Annual fixed overhead cost is expected to be: Maintenance $ 22,200 Depreciation 42,900 Insurance 27,100 Rent 33,530 Total $ 125,730

Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,830 canoes, 3,110 canoes, and 3,550 canoes. Canoes sell for $930 each. The standard variable cost information for a canoe is as follows. Direct materials $ 220 Direct labor 109 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 454 Annual fixed overhead cost is expected to be: Maintenance $ 22,200 Depreciation 42,900 Insurance 27,100 Rent 33,530 Total $ 125,730

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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