Number 8 A & B please

Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of16,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31. 2019 Sales $3,600,000 Cost of goods sold Direct materials $960,000 Direct labor 240,000 Machinery repairs (variable cost) 64,000 DepreciationPlant equipment (straightline) 315,000 Utilities ($48,000 is variable) 198,000 Plant management salaries 230,000 2,007,000 Gross profit 1,593,000 Selling expenses Packaging 80,000 Shipping 112,000 Sales salary (fixed annual amount) 260,000 452,000 General and administrative expenses Advertising expense 133,000 Salaries 251,000 Entertainment expense 100,000 484,000 Income from operations $ 657,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) $4,338,000 Cost of goods sold Direct materials $1,156,000 Direct labor 293,000 Machinery repairs (variable cost) 67,000 DepreciationPlant equipment (straightline) 315,000 Utilities (fixed cost is $147,500) 203,750 Plant management salaries 240,000 2,274,750 Gross profit 2,063,250 Selling expenses Packaging 92,000 Shipping 126,000 Sales salary (annual) 276,000 494,000 General and administrative expenses Advertising expense 141,000 Salaries 251,000 Entertainment expense 103,000 495,000 Income from operations $1.074.250 Requhed: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) 8) In the past few years, Phoenix Company has made many changes to their factory production process and have also experienced significant employee turnover. Management believes that operations have been more stable in the most recent year and are representative of future operations. Because of this expected stability, management is proposing standards for direct labor be based on the most current results (Actual quantities and rates from in 3a and 3c). a) A 3% wage increase has been authorized for all direct labor employees. Add the 3% increase to the ACTUAL average labor rate from 3c. This will be the new standard labor rate. Include the amount in the highlighted square in the NEXT YEAR standard cost card. b) The company anticipates the standard direct labor hour will be 0.85 hours per finished good. this is slightly lower than their previous actual average (0.90) because management expects more efficiency given employee experience, etc.3) With respect to direct labor, calculate the following relating to Phoenix Company's operating results for the year. a) Assume Phoenix Company concluded it spent an average of 0.90 hours (Actual) to complete one finished good unit. How many hours of direct labor did Phoenix Company have for the year? Hint: Multiply the number of units produced by 0.90 hours. Round to the nearest whole number of hours. Use this amount as actual hours, AH, in the calculation of DL variances below. 19,000*.90 =17,100 hours b) Using the standard cost card (1 above) and the flexible budget, how many hours should Phoenix Company have used for production during the year? Round to the nearest whole number of hours. Use this amount as standard hours, SH, in the calculation of DL variances below. 1.24*19,000 23,560 hours c) What was the company's average direct labor wage rate? Hint: Calculate as direct labor expense divided by total direct labor hours. Show 2 decimals. Use this as standard rate, SR, in the calculation of DL variances below. 240000/17100= $14.04