Problem 21 1A Preparing and analyzing a flexible budget LO P1, A1 The following information applies to the questions displayed below 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 $ 3,150,000 Cost of goods sold Direct materials $ 900,000 Direct labor 240,000 Machinery repairs (variable cost) 45,000 DepreciationPlant equipment (straight line) 315,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 200,000 1,895,000 Gross profit 1,255,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 415,000 General and administrative expenses Advertising expense 150,000 Salaries 241,000 Entertainment expense 90,000 481,000 Income from operations $ 359,000 Problem 21 1A Part 1 2 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

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Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1 [The following information applies to the questions displayed below.] Phoenix Companys 2019 master budget

Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1

[The following information applies to the questions displayed below.] 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			$	3,150,000
Cost of goods sold
Direct materials	$	900,000
Direct labor		240,000
Machinery repairs (variable cost)		45,000
DepreciationPlant equipment (straight-line)		315,000
Utilities ($45,000 is variable)		195,000
Plant management salaries		200,000		1,895,000
Gross profit				1,255,000
Selling expenses
Packaging		75,000
Shipping		105,000
Sales salary (fixed annual amount)		235,000		415,000
General and administrative expenses
Advertising expense		150,000
Salaries		241,000
Entertainment expense		90,000		481,000
Income from operations			$	359,000

Problem 21-1A Part 1&2

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.