Ch 21 Homework Saved Problem 21-2A Preparation and analysis of a flexible budget performance report LO P1, P2, A1 Phoenix Company's 2017 master budget included the following fowed budget report. It is based on an expected production and sales vc me of 15,000 units. 3.34 points $3,000,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Saler Cost goods sold Direct materials Direct labor Machinery repairs variable cost) Depreciation Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary(fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $975,000 225.000 60.000 300,000 195.000 200.000 0 1.955.000 1.045.000 75.000 105.000 250,000 References 430,000 125.000 241,000 90,000 456,000 159,000 $ Phoenix Company's actual income statement for 2017 follows $3,668,000 PHOENIX CONPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (18.000 units) Cost of goods sold Direct materials $1,185,000 Direct labor 270.000 Machinery repairs (Variable cost) 63.000 Depreciation-Plant equipment straight line) 300.000 Utilities (fixed cost to $167.500) 200, 500 Plant management salaries 210,000 Gross profit Selling expenses Packaging 87.500 Shipping 118,500 Sales salary annual) 268,000 General and administrative expenses Advertising expense 132.000 Salaries Entertainment expense Income from operations 2,236,500 1.011.500 474,000 466,500 471.000 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 Print Fav. Unfav. Favorable Variable costs erences Unfavorable Direct labor Direct materials . Machinery repairs Utilities Shipping Packaging Favorable Favorable Total variable costs Favorable No variance Fixed costs Depreciation Plant equipment (straight-line) Utilities Plant mananement salaries Sales salary Unfavorable Advertising expense Salaries No variance Entertainment expense Unfavorable Total fixed costs Unfavorable Income from operations Favorable