Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[The following information applies to the questions displayed below.] Phoenix Companys 2015 master budget included the following fixed budget report. It is based on an
[The following information applies to the questions displayed below.]
Phoenix Companys 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 | $ | 3,150,000 | |||
Cost of goods sold | |||||
Direct materials | $ | 945,000 | |||
Direct labor | 210,000 | ||||
Machinery repairs (variable cost) | 45,000 | ||||
Depreciationplant equipment (straight-line) | 330,000 | ||||
Utilities ($30,000 is variable) | 195,000 | ||||
Plant management salaries | 180,000 | 1,905,000 | |||
Gross profit | 1,245,000 | ||||
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 | 80,000 | 471,000 | |||
Income from operations | $ | 359,000 | |||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started