Exercise 6-5 Sunland 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 $806 each. The standard variable cost information for a canoe is as follows. Direct materials Direct labor Variable overhead $304 198 Utilities 35 Indirect material 30 Indirect labor 60 Total $627 Annual fixed overhead cost is expected to be: Maintenance $ 18,260 Depreciation 38,700 Insurance 26,600 Rent 29,980 Total $113,540 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 $856 each. The company incurred the following costs for the year: Direct material $ 923,000 Direct labor 585,900 Variable overhead 399,500 Fixed overhead 121,140 Total $2,029,540 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 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter o for the amounts.) 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 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter o for the amounts.) Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Unit sales 856 | Sales revenue 2653600 $ Less A Variable expenses Direct material 923000 Direct labor 585900 Overhead 399500 Total variable expenses 1908400 Contribution margin 745200 Total fixed expenses 121540 Operating income $ 623660 $