Swifty manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three diffe 2,830 canoes, 3,110 canoes, and 3,550 canoes. Canoes sell for $930 each. The standard variable cost information follows. Direct materials Direct labor Variable overhead Utilities $ 220 109 35
Swifty manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three diffe 2,830 canoes, 3,110 canoes, and 3,550 canoes. Canoes sell for $930 each. The standard variable cost information follows. Direct materials Direct labor Variable overhead Utilities $ 220 109 35
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9
![Swifty 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
Direct labor
Variable overhead
Utilities
Indirect material
Indirect labor
Total
Insurance
$ 220
Rent
109
Total
35
30
Annual fixed overhead cost is expected to be:
60
Maintenance $ 22,200
Depreciation
42,900
$ 454
27,100
33,530
$ 125,730
Prepare a flexible budget for the three sales levels under consideration.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e2d08ad-6014-42a7-9114-a2bce90f1231%2F69ba2348-f395-47cf-a799-144e3ee731d1%2Fet0o5l2_processed.png&w=3840&q=75)
Transcribed Image Text:Swifty 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
Direct labor
Variable overhead
Utilities
Indirect material
Indirect labor
Total
Insurance
$ 220
Rent
109
Total
35
30
Annual fixed overhead cost is expected to be:
60
Maintenance $ 22,200
Depreciation
42,900
$ 454
27,100
33,530
$ 125,730
Prepare a flexible budget for the three sales levels under consideration.
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