Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 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 Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment $ 3,234,000 1,001, 000 231, 000 61, 600 305,000 198,000 penix Company reports the following actual results. Actual sales were 18,400 units. sales (18,400 units) $ 3,910,000 Costs $ 1,210, 720 283, 360 64,400 305,000 208,000 267, 720 273,000 604, 700 194,000 499, 100 231,000 255,000 595, 700 194, 000 $ 161, 700
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 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 Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment $ 3,234,000 1,001, 000 231, 000 61, 600 305,000 198,000 penix Company reports the following actual results. Actual sales were 18,400 units. sales (18,400 units) $ 3,910,000 Costs $ 1,210, 720 283, 360 64,400 305,000 208,000 267, 720 273,000 604, 700 194,000 499, 100 231,000 255,000 595, 700 194, 000 $ 161, 700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
2 part 2
Transcribed Image Text: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 "0" for zero variance.)
For Year Ended December 31
Sales
Variable costs
Direct materials
Direct labor
Shipping
Sales staff commissions
Total variable costs
Contribution margin
Fixed costs
Depreciation Machinery
Supervisory salaries
Sales staff salaries
Administrative salaries
Depreciation Office equipment
Total fixed costs
Income
PHOENIX COMPANY
Flexible Budget Performance Report
Flexible
Budget
(18,400
units)
✔
X Answer is not complete.
63 46333 33 3343
0
0
Actual
Results
(18,400
units)
0
0
Variances
Favorable/Unfavorable
Unfavorable
Unfavorable
Favorable
Favorable
Unfavorable
Favorable
No variance
Unfavorable
Unfavorable
Unfavorable
No variance
Unfavorable
Favorable
0000 0 0000 00
✓
✓
✓
✓
✓
Transcribed Image Text:Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400
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 18,400 units.
Sales (18,400 units)
$ 3,910,000
Costs
$ 1,210, 720
283, 360
64,400
305,000
208,000
267, 720
273,000
604, 700
194, 000
499, 100
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-Office equipment
$3,234,000
1,001, 000
231,000
61, 600
305,000
198, 000
231,000
255,000
595, 700
194, 000
$ 161, 700
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