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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,300 units $ 3,213,800 PHOENIX COMPANY Fixed

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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,300 units $ 3,213,800 PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income 994,500 229,500 45,900 300,000 198,000 244,800 253,000 588,650 198,000 $ 160,650 Phoenix Company reports the following actual results. Actual sales were 18,300 units. Sales (18,300 units) Costs Direct materials Direct labor Sales staff commissions Depreciation Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income $ 3,888,750 $ 1,204,140 281,820 45,750 300,000 213,000 284,565 274,000 598,650 198,000 488,825 Required: Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero variance.) For Year Endod December 31 PHOENIX COMPANY Flexible Budget Performance Report Flexible Actual Results Budget (18,300 Variances Favorable/Unfavorable units) (18,300 units) $ 3,843,000 $ 3,888,750 $ 45,750 Favorable Sales Variable costs Direct materials Direct labor Sales staff commissions Shipping Total variable costs 1,204,140 281,820 45,750 284,565 1,816,275 Unfavorable Unfavorable Favorable Favorable Unfavorable 0 PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31 Flexible Budget (18,300 units) Actual Results (18,300 units) Variances Favorable/Unfavorable $ 3,843,000 $ 3,888,750 $ 45,750 Favorable Sales Variable costs Direct materials Direct labor 1,204,140 281,820 45.750 284,565 1,816,275 Unfavorable Unfavorable Favorable Favorable Unfavorable Favorable 0 ices Sales staff commissions Shipping Total variable costs Contribution margin Fixed costs Supervisory salarios Administrative salaries Depreciation Office equipment Depreciation Machinery Sales staff salaries Unfavorable Unfavorable No variance No variance Unfavorable 0 0 Total fixed costs Income Unfavorable Favorable

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