Question
Required information [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production
Required information
[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 15,500 units.
| PHOENIX COMPANY | |
| Fixed Budget | |
| For Year Ended December 31 | |
| Sales | $ 3,100,000 |
|---|---|
| Costs | |
| Direct materials | 992,000 |
| Direct labor | 217,000 |
| Sales staff commissions | 62,000 |
| DepreciationMachinery | 305,000 |
| Supervisory salaries | 204,000 |
| Shipping | 248,000 |
| Sales staff salaries (fixed annual amount) | 246,000 |
| Administrative salaries | 471,000 |
| DepreciationOffice equipment | 200,000 |
| Income | $ 155,000 |
Phoenix Company reports the following actual results. Actual sales were 18,500 units.
| Sales (18,500 units) | $ 3,746,250 |
|---|---|
| Costs | |
| Direct materials | $ 1,198,800 |
| Direct labor | 266,400 |
| Sales staff commissions | 64,750 |
| DepreciationMachinery | 305,000 |
| Supervisory salaries | 214,000 |
| Shipping | 287,675 |
| Sales staff salaries (fixed annual amount) | 268,000 |
| Administrative salaries | 478,000 |
| DepreciationOffice equipment | 200,000 |
| Income | 463,625 |
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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Research Methods For Accounting And Finance Global Management Series
Authors: Audrey Paterson, Kevin D. Ogorman, David Leung, Robert Macintosh, William Jackson
1st Edition
1910158895, 978-1910158890
