Managerial Accounting: E6-2 Adarmes Adventures manufactures aluminum canoes

Managerial Accounting
E6-2 Preparing a flexible budget
Adarmes Adventures 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.
Direct materials 300
Direct labor 150
Variable overhead
Utilities 35
Indirect material 30
Indirect labor 60
Total 575
Annual fixed overhead cost is expected to be:
Maintenance 20,000
Depreciation 40,000
Insurance 37,000
Rent 30,000
Total 127,000

Prepare a flexible budget for the three sales levels under consideration.