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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

FINANCIAL ACCOUNTING
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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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.
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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