Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units. 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 Income 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 $ 3,171,000 moenix Company reports the following actual results. Actual sales were 18,100 units. Sales (18,1ee units) $ 3,846,250 Costs $ 1,172,880 278,740 63,350 295,000 211,000 281,455 271,000 581,550 199,000 492,275 966,400 226,500 60,400 295,000 196,000 241,600 255,000 572,550 199,000 $ 158,550
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units. 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 Income 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 $ 3,171,000 moenix Company reports the following actual results. Actual sales were 18,100 units. Sales (18,1ee units) $ 3,846,250 Costs $ 1,172,880 278,740 63,350 295,000 211,000 281,455 271,000 581,550 199,000 492,275 966,400 226,500 60,400 295,000 196,000 241,600 255,000 572,550 199,000 $ 158,550
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:Required:
Prepare a flexible budget performance report for the year. (Indicate the effect of each varlance by selecting "Favorable" or
"Unfavorable". Select "No varlance" and enter "O" for zero variance.)
For Year Ended December 31
Variable costs
Fixed costs
PHOENIX COMPANY
Flexible Budget Performance Report.
Flexible
Budget (18,100
units)
0
0
Actual Results
(18,100 units)
< Prav
Variances
8
2
Favorable/Unfavorable
NO
#
Navt 1
Transcribed Image Text:Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100
units.
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
Income
PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Sales (18,10e units)
Costs
Phoenix Company reports the following actual results. Actual sales were 18,100 units.
Direct materials
Direct labor
sales staff commissions
Depreciation-Machinery.
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries i
Depreciation-Office equipment
Income
$3,171,000
966,400
226,500
60,400
295,000
196,080
241,600
255,000
572,550
199,000
$ 158,550
$ 3,846,250
$ 1,172,880
278,740
63,350
295,000
211,000
281,455
271,000
581,550
199,000
492,275
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