Phoenix Company's 2019 master budget included the following fixed budget report. It is base volume of 16.004 units $3,600,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods told Direct materials Direct labor Machinery repairs (variable cost) Depreciation Plant equipment (straight-line) Utilities ($48, eee is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 880,eee 240, eee 64, Bee 315, eee 198,eee 215.ee 1,912, ege 1,688,888 88,888 112, eee 27e, eee 462, eee 127, eee 241, eee 1ee, eee 468 eee $ 758,eee Phoenix Company's actual income statement for 2019 follows. $4,338,eee PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,800 units) Cost of goods sold Direct materials $1,860, eee Direct labor 292, ese Machinery repairs (variable cost) 68. eee Depreciation-Plant equipment (straight-line) 315,00 Utilities (fixed cost is $148,000) 204, see Plant Magagement salaries 225 Bee Gross profit Selling expenses Packaging 93,000 Shipping 125,000 ales salary (annual) 287.000 General and administrative expenses Advertising expense 134,000 Salaris 241,000 Entertaihgent expense 184 de Income from operations 2.164, eee 2,174,00 505,000 479, ee $1,190,00 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each varlance unfavorable, and No varlance.) 8 Homework General and admistrative expenses Advertising pense Salaries Entertaiment expense Income fror operations 134, eee 241,080 184, 479,00 $1,190,000 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each varlance by selecting te unfavorable, and No varlance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav./Unfav. Favorable Sales Variable costs Direct materials Direct labor Unfavorable Unfavorable Favorable Machinery repairs Uites Packaging Shipping Favorable Favorable Favorable Unfavorable Favorable Total variable costs Contribuin margin Fored costs Depreciation-Plagt equipment (straight-line) No variance Favorable Plagt management salaries Sales y Advertising expense Salaries Entertainment expense Unfavorable Unfavorable Unfavorable No variance Unfavorable Total fored costs Unfavorable income from operations Favorable
