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 Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation Office equipment Income $ 3,255,000 1,023,000 248,000 46,500 300,000 199,000 232,500 252,000 594,250 197,000 $ 162,750 Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1
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 Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation Office equipment Income $ 3,255,000 1,023,000 248,000 46,500 300,000 199,000 232,500 252,000 594,250 197,000 $ 162,750 Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Please do not give solution in image format thanku
Transcribed Image Text:Required:
1&2. Prepare flexible budgets at sales volumes of 14,500 and 16,500 units.
3. The company's business conditions are improving. One possible result is a sales volume of 18,500 units. Prepare a
simple budgeted income statement if 18,500 units are sold.
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Prepare flexible budgets at sales volumes of 14,500 and 16,500 units.
Sales
Variable costs
Req 3
Direct materials
Direct labor
Sales staff commissions
Shipping
Total variable costs
Contribution margin
Fixed costs
Depreciation Machinery
Supervisory salaries
Sales staff salaries
Administrative salaries
Depreciation Office equipment
Total fixed costs
Income
Onlan
Flexible Budget
Variable Amount
per Unit
PHOENIX COMPANY
Flexible Budgets
0.00
For Year Ended December 31
Total Fixed
Cost
Variable Amount
per Unit
$
Flexible Budget
Total Fixed
Cost
Flexible Budget for:
Units Sales Unit Sales of
of 14,500 16,500
0 $
0
0
$
Flexible Budget for:
Units Sales Unit Sales of
of 14,500
16,500
0
0
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
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation Office equipment
Income
$. 3,255,000
1,023,000
248,000
46,500
300,000
199,000
232,500
252,000
594,250
197,000
$ 162,750
Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1
Required:
1&2. Prepare flexible budgets at sales volumes of 14,500 and 16,500 units.
3. The company's business conditions are improving. One possible result is a sales volume of 18,500 units. Prepare a
simple budgeted income statement if 18,500 units are sold.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education