90.2K

Verified Solution

Link Copied!

Can you help me with the Flexible Budget Variance and Flexible Budget?

Swifty manufactures aluminum canoes. In planning for the coming year CFO Alexis King is considering three different sales targets: 1,900 cances, 2.400 canoes, and 2.900 canoes. Canoes sell for $700 each. The standard variable cost information for a canoe is as follows. $ 200 110 Direct materials Direct labor Variable overhead Utilities Indirect material Indirect labor 10 998 40 20 Total $ 380 Annual fixed overhead cost is expected to be: Maintenance $ 41,000 Depreciation 38,000 Insurance 31,000 Rent 58,000 Total $ 168,000 Alexis King chose to prepare a static budget based on sales of 2,700 canoes. Actual sales were 2,750 canoes at a price of $ 690 each The company incurred the following costs for the years Direct material $ 496,000 Direct labor 345,200 Variable overhead 263,000 Fixed overhead 150,000 Total $ 1,254 200 Prepare a performance report for the year that shows the flable budget and sales volume variances (If operating Income is negative, enter amounts using a negative sign preceding the number c.8. 45 or parentheses 3 (45). Round answers to decimal places, s. 125. I variance is zero, select "Not Applicable and enter for the amounts.) are a performance report for the year that shows the flexible budget and sales volume variances. ramounts using a negative sign preceding the number e.g. -45 or parentheses eg. (45). Round answers to ance is zero, select "Not Applicable and enter for the amounts.) Flexible Budget Variance Flexible Budget 5 $ DORTE DO! 10001 0 $ Textbook and Media

Answer & Explanation Solved by verified expert

See Answer