Exercise 6-5 Marigold 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. $ 303 170 Direct materials Direct labor Variable overhead Utilities Indirect material Indirect labor 35 30 60 $ 598 Total 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. (If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to o decimal places, e.g. 125. If variance is zero, select "Not Applicable and enter o for the amounts.) Actual Results 3100 Flexible Budget Variance 3100 Favorable 155000 Favorable Flexible Budget 3100 Unit sales Sales Volume Variance Not Applicable 80000 Favorable Static Budget 3000 240000 Sales revenue $ 2635000 248000 Less V Variable expenses : Direct material Direct labor 913300 499300 398000 1929750 Overhead Total variable expenses y Contribution margin 705250 Total fixed expenses 119150 Operating income 586100 LINK TO TEXT LINK TO VIDEO