Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX

image text in transcribed
image text in transcribed
Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 01, 2019 Sales $3,375,000 cost of goods sold Direct materials $750,000 Direct labor 300,000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment (straight-line) 315,000 utilities ($45,000 is variable) 205,000 Piant management salaries 215,000 1,845,000 Gross profit 1,530,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 250,000 430,000 General and administrative expenses 131,000 Advertising expense Salaries 251,000 90,000 472,000 Entertainment expense $ 628,000 Income from operations Phoenix Company's actual income statement for 2019 follows. Phoenix Company's actual income statement for 2019 follows. $4,098,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (18,000 units) Cost of goods sold Direct materials $917,000 Direct labor 368,000 Machinery repairs (variable cost) 63,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $157,500) 210,500 Plant management salaries 225,000 Gross profit Selling expenses Packaging 88,000 Shipping 118,500 Sales salary (annual) 267,000 General and administrative expenses Advertising expense 140,000 Salaries 251,000 Entertainment expense 93,000 Income from operations 2,098,500 1,999,500 473,500 484,000 $1,042,000 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav./Unfav. Variable costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Alaskas Permanent Fund Dividend Examining Its Suitability As A Model

Authors: K. Widerquist, M. Howard

2nd Edition

0230112072, 9780230112070

More Books

Students also viewed these Accounting questions