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

$300

Direct labor

150

Variable overhead

Utilities

35

Indirect material

30

Indirect labor

60

Total

$575

Annual fixed overhead cost is expected to be:

Maintenance

$20,000

Depreciation

40,000

Insurance

27,000

Rent

30,000

Total

$117,000

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$910,000

Direct labor

435,000

Variable overhead

398,000

Fixed overhead

125,000

Total$1,868,000