15,500 units. Sales Costs Direct materials. Direct labor Sales staff commissions Depreciation-Machinery Income PHOENIX COMPANY Fixed Budget For Year Ended December 31 Supervisory salaries. Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment ales (18,500 units) osts ncome penix Company reports the following actual results. Actual sales were 18,500 units. Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries. Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation Office equipment $ 3,255,000 1,007,500 232,500 77,500 300,000 199,000 217,000 251,000 611,750 196,000 $ 162,750 $ 3,931,250 $ 1,217,300 284,900 83,250 300,000 210,000 250,675 268,000 620,750 196,000 500,375 quired: pare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting "Favorable" or favorable". Select "No variance" and enter "0" for zero variance.)
15,500 units. Sales Costs Direct materials. Direct labor Sales staff commissions Depreciation-Machinery Income PHOENIX COMPANY Fixed Budget For Year Ended December 31 Supervisory salaries. Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment ales (18,500 units) osts ncome penix Company reports the following actual results. Actual sales were 18,500 units. Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries. Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation Office equipment $ 3,255,000 1,007,500 232,500 77,500 300,000 199,000 217,000 251,000 611,750 196,000 $ 162,750 $ 3,931,250 $ 1,217,300 284,900 83,250 300,000 210,000 250,675 268,000 620,750 196,000 500,375 quired: pare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting "Favorable" or favorable". Select "No variance" and enter "0" for zero variance.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Phoneix Company... Please refer to the two images below.
Transcribed Image Text:For Year Ended December 31
Variable costs
Fixed costs
PHOENIX COMPANY
Flexible Budget Performance Report
Flexible
Budget (18,500
units)
Actual Results
(18,500 units)
Variances
Favorable/Unfavorable
Transcribed Image Text:Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of
15,500 units.
Sales
Costs
PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Direct materials
Direct labor
Sales staff commissions
Depreciation-Machinery
Income
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-Office equipment
Income
Direct materials
Direct labor
Sales staff commissions
Depreciation-Machinery
Phoenix Company reports the following actual results. Actual sales were 18,500 units.
Sales (18,500 units)
$ 3,931,250
Costs
$ 1,217,300
284,900
83,250
300,000
210,000
250,675
268,000
620, 750
196,000
500,375
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-Office equipment
$ 3,255,000
1,007,500
232,500
77,500
300,000
199,000
217,000
251,000
611,750
196,000
$ 162,750
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 "O" for zero variance.)
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