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 Costs Direct materials Direct labor Sales staff commissions Supervisory salaries Depreciation-machinery Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Incone $3,000,000 1,001,000 231,000 46,200 295,000 205,000 215,600 247,000 489,200 196,000 $ 154,000 Phoenix Company reports the following actual results. Actual sales were 18,400 units Sales (18,400 units) Costs Direct materials Direct labor $ 3,726,000 $1,210,720 283,360 sales staff commissions 46,000 Depreciation-achinery 295,000 Supervisory salaries 216,000 shipping 249,320 Sales staff salaries (fixed annual amount) 268,000 Administrative salaries 496,200 Depreciation-office equipment 196,000 Income 465,400 Required: Prepare a flexible budget performance report for the year. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero variance. For Year Ended December 31 Variable costs Fixed costs PHOENIX COMPANY Flexible Budget Performance Report Flexible Budget (18,400 units) Actual Results Variances Favorable or Unfavorable (18,400 units)
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 Costs Direct materials Direct labor Sales staff commissions Supervisory salaries Depreciation-machinery Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Incone $3,000,000 1,001,000 231,000 46,200 295,000 205,000 215,600 247,000 489,200 196,000 $ 154,000 Phoenix Company reports the following actual results. Actual sales were 18,400 units Sales (18,400 units) Costs Direct materials Direct labor $ 3,726,000 $1,210,720 283,360 sales staff commissions 46,000 Depreciation-achinery 295,000 Supervisory salaries 216,000 shipping 249,320 Sales staff salaries (fixed annual amount) 268,000 Administrative salaries 496,200 Depreciation-office equipment 196,000 Income 465,400 Required: Prepare a flexible budget performance report for the year. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero variance. For Year Ended December 31 Variable costs Fixed costs PHOENIX COMPANY Flexible Budget Performance Report Flexible Budget (18,400 units) Actual Results Variances Favorable or Unfavorable (18,400 units)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text: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
Costs
Direct materials
Direct labor
Sales staff commissions
Depreciation-Machinery
Supervisory salaries
Shipping
sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-office equipment
Incone
$ 3,050,000
1,001,000
231,000
46,200
295,000
205,000
215,600
247,000
489,200
196,000
$ 154,000
Phoenix Company reports the following actual results. Actual sales were 18,400 units
Sales (18,400 units)
Costs
Direct materials
Direct labor
$ 3,726,000
$ 1,210,720
283,360
sales staff commissions
46,000
Depreciation-achinery
295,000
Supervisory salaries
216,000
shipping
249,320
Sales staff salaries (fixed annual amount)
Administrative salaries
268,000
496,200
Depreciation-office equipment
196,000
Income
465,400
Required:
Prepare a flexible budget performance report for the year.
Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero
variance.
PHOENIX COMPANY
Flexible Budget Performance Report
For Year Ended December 31
Flexible
Budget (18,400
units)
Actual Results
Variances
Favorable or Unfavorable
(18,400 units)
Variable costs
Fixed costs
0
0
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