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Phoenix Company's 2015 master budget included the wing u d report. It is based on an expected production and sales volume of 15.000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015 Phoenix Company's actual income statement for 2015 follow PHOENIX COMPANY Statement of income from Operations For Year Ended December 31, 2015 1. Prepare a flexible budget performance report for 2015 Phoenix Company's 2015 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, 2015 Sales $ 3,000,000 Cost of goods sold Direct materials $ 975,000 Direct labor 225.000 Machinery repairs (variable cost) 60.000 Depreciation-plant equipment (straight-line) 300.000 Utilities ($45,000 is variable) 195.000 Plant management salaries 200.000 1,955,000 1,045,000 Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) 75,000 105,000 250.000 430,000 General and administrative expenses Advertising expense Salaries Entertainment expense 125.000 241.000 90.000 456,000 Income from operations $ 159,000 Phoenix Company's actual income statement for 2015 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2015 Sales (18,000 units) $ 3,648,000 Cost of goods sold Direct materials $ 1.185.000 Direct labor 278,000 Machinery repairs (variable cost) 63.000 Depreciation-plant equipment (straight-line) 300.000 Utilities (fixed cost is $147.500) 200 500 Plant management salaries 210.000 2,236,500 1,411,500 Gross profit Selling expenses Packaging Shipping Sales salary (annual) 87,500 118.500 268.000 474,000 General and administrative expenses Advertising expense Salaries Entertainment expense 132.000 241.000 93.500 466,500 Income from operations $ 471,000 Required: 1. Prepare a flexible budget performance report for 2015. PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2015 Flexible Budget Actual Results Variances Fay / Unfav. Variable costs Fixed costs