Phoenix Company reports the following fixed budget It is based on an expected production and sales volume of 15,300 units PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales $ 3,060,000 Costs Direct materials 1,009,800 Direct labor 244,800 Sales staff commissions 61,200 DepreciationMachinery 305,000 Supervisory salaries 198,000 Shipping 229,500 Sales staff salaries (fixed annual amount) 251,000 Administrative salaries 414,700 DepreciationOffice equipment 193,000 Income $ 153,000 Phoenix Company reports the following actual results Actual sales were 18,300 units Sales (18,300 units) $ 3,705,750 Costs Direct materials $ 1,222,440 Direct labor 300,120 Sales staff commissions 64,050 DepreciationMachinery 305,000 Supervisory salaries 213,000 Shipping 266,265 Sales staff salaries (fixed annual amount) 270,000 Administrative salaries 424,700 DepreciationOffice equipment 193,000 Income 447,175 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 0 for zero variance ) 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 0 for zero variance )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

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

Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,300 units.

PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Sales	$ 3,060,000
Costs
Direct materials	1,009,800
Direct labor	244,800
Sales staff commissions	61,200
DepreciationMachinery	305,000
Supervisory salaries	198,000
Shipping	229,500
Sales staff salaries (fixed annual amount)	251,000
Administrative salaries	414,700
DepreciationOffice equipment	193,000
Income	$ 153,000

Phoenix Company reports the following actual results. Actual sales were 18,300 units.

Sales (18,300 units)	$ 3,705,750
Costs
Direct materials	$ 1,222,440
Direct labor	300,120
Sales staff commissions	64,050
DepreciationMachinery	305,000
Supervisory salaries	213,000
Shipping	266,265
Sales staff salaries (fixed annual amount)	270,000
Administrative salaries	424,700
DepreciationOffice equipment	193,000
Income	447,175

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 "0" for zero variance.)

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 "0" for zero variance.)