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Exercise 6-4 Coronado manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,610 canoes, 3,280 canoes,
Exercise 6-4 Coronado manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,610 canoes, 3,280 canoes, and 3,660 canoes. Canoes sell for $810 each. The standard variable cost information for a canoe is as follows. $224 135 Direct materials Direct labor Variable overhead Utilities Indirect material 35 Indirect labor 60 $484 Total Annual fixed overhead cost is expected to be: Maintenance $ 21,800 Depreciation 44,800 Insurance 28,300 Rent 34,320 Total $ 129,220 Prepare a flexible budget for the three sales levels under consideration. Unit 2,610 3,280 3,660 A: A
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