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Hachines Plant equipment (traight-line) Phoenix Company's 2019 master budget Included the following fixed budget report. It is based on an expected production and sales volume

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Hachines Plant equipment (traight-line) Phoenix Company's 2019 master budget Included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Tear Unded December 31, 2019 Sales $3,000,000 Cast of goods sold Direct materials 3975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200.000 1.955.000 Gross profit 1.045,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary fixed annual amount) 250.000 430,000 General and administrative expenses Advertising expense 125,000 Salarles 241,000 Entertainment expense 90.000 455,000 Income from operations $ 139,000 Phoenix Company's actual income statement for 2019 follows. PHONEX COMPANY statement of Tsoon from Operations For Year Ended December 31, 2019 Salee (10,000 units) $3,640.000 Coat of goods sold Diret materials $1,105,000 Direct labor 278.000 ( 63,000 300,000 uullities (fixed cost to $147.500) 200,500 plant management salaria 210.000 2,236.300 Groen profit 1,411,500 Selling expenses Packaging B7,500 118.500 Sales salaryCAL) 269.099 474,000 General and Administrative expense Advertising expense 132,000 Salaries 241,000 Entertainment expense 93,500 466,500 Income from operations 471.000 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. Advertising expense Depreciation-Plant equipment (straight-line) Direct labor Direct materials 0 0 Fixed costs 0 0

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