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Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and

Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sell for $800 each. The standard variable cost information for a canoe is as follows. Direct materials $ 303 Direct labor 170 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 598 Annual fixed overhead cost is expected to be: Maintenance $ 19,450 Depreciation 37,200 Insurance 25,180 Rent 29,520 Total $ 111,350 Alexis King chose to prepare a static budget based on sales of 3,000 canoes. Actual sales were 3,100 canoes at a price of $850 each. The company incurred the following costs for the year: Direct material $ 913,300 Direct labor 499,300 Variable overhead 398,000 Fixed overhead 119,150 Total $ 1,929,750 Prepare a performance report for the year that shows the flexible budget and sales volume variances.

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