1.2.3.4.

Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $3,375,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $1,050,000 Direct labor 150,000 Machinery repairs (variable cost) 75,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($60,000 is variable) 210,000 Plant management salaries 200,000 Gross profit Selling expenses Packaging 90,000 Shipping 120,000 Sales salary (fixed annual amount) 260,000 General and administrative expenses Advertising expense 127,000 Salaries 241,000 Entertainment expense 100,000 Income from operations 1,985,000 1,390,000 470,000 468,000 452,000 $ Phoenix Company's actual income statement for 2017 follows. $4,098,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (18,000 units) Cost of goods sold Direct materials $1,276,000 Direct labor 188,000 Machinery repairs (variable cost) 82,000 Depreciation-plant equipment (straight-line) 300,000 Utilities (fixed cost is $148,000) 219,000 Plant management salaries 211,000 Gross profit Selling expenses Packaging 105,000 Shipping 136,500 Sales salary (annual) 279,000 General and administrative expenses Advertising expense 135,000 Salaries 241,000 Entertainment expense 104,000 Income from operations 2,276,000 1,822,000 520,500 480,000 821,500 $ Required: 1. Prepare a flexible budget performance report for 2017. PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs 0 0 Fixed costs 0 0