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I need help with this accounting question for only step 1 and 2 asap. I will give good rating!!! Phoenix Company reports the following fixed
I need help with this accounting question for only step 1 and 2 asap. I will give good rating!!!
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,000 units. Sales Costs Direct materials Fixed Budget For Year Ended December 311 $3,000,000 975,000 PROBLEM SET A Problem 21-1A Preparing and analyzing a flexible budget P1 Direct labor... Sales staff commissions 225,000 60,000 Depreciation-Machinery 300,000 Supervisory salaries 200,000 Shipping 225,000 Sales staff salaries (fixed annual amount) 250,000 Administrative salaries 411,000 Depreciation-Office equipment 195.000 Income $ 159,000 Required 1. Classify all items listed in the fixed budget as variable or fixed. For variable costs, determine their amounts per unit. For fixed costs, determine their amounts for the year. 2. Prepare flexible budgets (see Exhibit 21.3) at sales volumes of 14,000 and 16,000 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. Prepare a simple budgeted income statement (as in Exhibit 21.1) if 18,000 units are sold. Check (2) Budgeted income at 16,000 units, $260.000
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