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Bramble manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,590 canoes, 3,110 canoes, and 3,860
Bramble manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,590 canoes, 3,110 canoes, and 3,860 canoes. Canoes sell for $910 each. The standard variable cost information for a canoe is as follows.
Direct materials | $ | 300 | ||
Direct labor | 126 | |||
Variable overhead | ||||
Utilities | 35 | |||
Indirect material | 30 | |||
Indirect labor |
| 60 | ||
Total | $ | 551 |
Annual fixed overhead cost is expected to be:
Maintenance | $ | 21,700 | ||
Depreciation | 42,400 | |||
Insurance | 27,500 | |||
Rent |
| 31,600 | ||
Total | $ | 123,200 |
Prepare a flexible budget for the three sales levels under consideration.
please I need help with this question
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