FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sheffield manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets:
2,670 canoes, 3,370 canoes, and 3,950 canoes. Canoes sell for $880 each. The standard variable cost information for a canoe is as
follows.
Direct materials.
Direct labor
Variable overhead
Utilities
Indirect material
Indirect labor
Total.
Insurance.
$ 210
Rent
146
Total
35
30
Annual fixed overhead cost is expected to be:
60
Maintenance $ 24,900
Depreciation
$481
42,200
27,600
33,900
$ 128,600
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Transcribed Image Text:Sheffield manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,670 canoes, 3,370 canoes, and 3,950 canoes. Canoes sell for $880 each. The standard variable cost information for a canoe is as follows. Direct materials. Direct labor Variable overhead Utilities Indirect material Indirect labor Total. Insurance. $ 210 Rent 146 Total 35 30 Annual fixed overhead cost is expected to be: 60 Maintenance $ 24,900 Depreciation $481 42,200 27,600 33,900 $ 128,600
Prepare a flexible budget for the three sales levels under consideration.
V
Unit
2,670
3,370
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Transcribed Image Text:Prepare a flexible budget for the three sales levels under consideration. V Unit 2,670 3,370
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