Required information Skip to question [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on
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[The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units.
| PHOENIX COMPANY | |
| Fixed Budget | |
| For Year Ended December 31 | |
| Sales | $ 3,234,000 |
|---|---|
| Costs | |
| Direct materials | 1,001,000 |
| Direct labor | 231,000 |
| Sales staff commissions | 46,200 |
| DepreciationMachinery | 295,000 |
| Supervisory salaries | 201,000 |
| Shipping | 231,000 |
| Sales staff salaries (fixed annual amount) | 255,000 |
| Administrative salaries | 613,100 |
| DepreciationOffice equipment | 199,000 |
| Income | $ 161,700 |
Phoenix Company reports the following actual results. Actual sales were 18,400 units.
| Sales (18,400 units) | $ 3,910,000 |
|---|---|
| Costs | |
| Direct materials | $ 1,210,720 |
| Direct labor | 283,360 |
| Sales staff commissions | 46,000 |
| DepreciationMachinery | 295,000 |
| Supervisory salaries | 214,000 |
| Shipping | 267,720 |
| Sales staff salaries (fixed annual amount) | 274,000 |
| Administrative salaries | 622,100 |
| DepreciationOffice equipment | 199,000 |
| Income | 498,100 |
Required: Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "0" for zero variance.)
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Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess
9th Edition
032418803X, 978-0324188035
