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Question - Bramble manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,170 canoes, and 3,860 canoes. Canoes sell for $830 each. The standard variable cost information for a canoe is as follows.
Direct materials $292
Direct labor 129
Variable overhead
Utilities 35
Indirect material 30
Indirect labor 60
Total $546
Annual fixed overhead cost is expected to be:
Maintenance $20,600
Depreciation 41,800
Insurance 29,500
Rent 31,370
Total $123,270
Required - Prepare a flexible budget for the three sales levels under consideration.
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