Question
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget For
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,000 units.
| PHOENIX COMPANY | |
|---|---|
| Fixed Budget | |
| For Year Ended December 31 | |
| Sales | $ 3,000,000 |
| Costs | |
| Direct materials | 960,000 |
| Direct labor | 240,000 |
| Sales staff commissions | 60,000 |
| DepreciationMachinery | 305,000 |
| Supervisory salaries | 204,000 |
| Shipping | 225,000 |
| Sales staff salaries (fixed annual amount) | 248,000 |
| Administrative salaries | 415,000 |
| DepreciationOffice equipment | 193,000 |
| Income | $ 150,000 |
Required: 1&2. Prepare flexible budgets at sales volumes of 14,000 and 16,000 units.
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Auditors Letter Handbook
Authors: American Bar Association Business Law Section
2nd Edition
161438973X, 978-1614389736
