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
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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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