Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Phoenix Companys 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 31, 2019
Sales $ 3,300,000
Cost of goods sold
Direct materials $ 960,000
Direct labor 225,000
Machinery repairs (variable cost) 45,000
DepreciationPlant equipment (straight-line) 300,000
Utilities ($60,000 is variable) 195,000
Plant management salaries 220,000 1,945,000
Gross profit 1,355,000
Selling expenses
Packaging 90,000
Shipping 105,000
Sales salary (fixed annual amount) 235,000 430,000
General and administrative expenses
Advertising expense 150,000
Salaries 230,000
Entertainment expense 75,000 455,000
Income from operations $ 470,000

Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed.

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

Buck's The Next Step Advanced Medical Coding And Auditing

Authors: Elsevier

1st Edition

0323762778, 978-0323762779

More Books

Students also viewed these Accounting questions