Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. a. Classify all items listed in the fixed budget as variable or fixed. b. Also determine their amounts per unit or their amounts for the year, as appropriate. c. Identify the unit variable costs in the format of variable costing, according to your findings in part a
Q: Before the year began, the following static budget was developed for the estimated sales of 100,000.…
A: Budget is a forecast or an estimate of future outcomes of an entity. It is prepared by entity to…
Q: tar Company has a standard absorption and flexible budgeting system. Selected data for November 2020…
A: Total spending variance can be defined as the difference between actual overhead costs incurred and…
Q: Taylor corpration is analyzing the cost behavior of three cost items, A, B, and C, to budget for the…
A: Fixed expenses are the expenses which remains same irrespective of the level of output. Variable…
Q: Consider the following performance report for Jamie's Department Store for the month of October 2021…
A: Percentage increase in sales from Budget to Actual = (473,000 - 430,000)/430,000 = 10% Percentage…
Q: Collins Company is preparing its master budget for April. Use the given estimates to determine the…
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an…
A: Variable Costing Income Statement: Variable costing income statement segregates fixed costs and…
Q: The following are the budgeted and the actual results for the month of April 2021 of Tommy Limited.…
A: Working Note: Production overhead (variable)=$325,000-$285,00029,000-25,000 units=$40,0004,000…
Q: The following production and cost information is for X Company for 2019: Budgeted 10,600…
A: 1) Static budget: Particulars Amount $ Variable cost (10,600 x 9.13) 96,778 Fixed cost…
Q: Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an…
A: Solution: Flexible budget is the budget based on various level of activity to know what will be…
Q: total sales revenue be
A: Sales revenue means the amount of revenue earned from the sale of goods to customers.
Q: Star Company has a standard absorption and flexible budgeting system. Selected data for November…
A: Total Spending Variance - The spending variance is the difference between the budgeted cost and the…
Q: For the year 2018, a company provides the following information: Description Amount Budgeted output…
A: Variance is considered as the difference between budgeted value and actual results. The management…
Q: ABC Ltd. is preparing a budget for 2018. Following are the information related to budget…
A: The flexible budget is prepared to estimate the expenses and revenue at different level of…
Q: he following information relates to a given department of Viernes Company for its fourth quarter of…
A: It is given that Actual total overhead - P178,500 Budget formula -P110,000 + P50 per hour Total…
Q: Before the year began, the following static budget was developed for the estimated sales of 50,000…
A: SOLUTION- FLEXIBLE BUDGET- IT IS A BUDGET WHICH IS ADJUSTED FOR ACTUAL OUTPUT . SO, THE BUDGET…
Q: Business Solutions's second-quarter 2020 fixed budget performance report for Its computer furniture…
A: The flexible budget performance report is prepared to analyse the difference between actual and…
Q: The following are estimates relating to its 2019 budget: Selling Price- Variable cost per…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Mae Company prepared the following preliminary budget assuming no advertising expenditures: Selling…
A: Increased Sale price per unit=Sale price ×100+15%=P 10×115%=P 11.5
Q: At the start of 2021, X Company developed the following budgeted total cost function: $9.52X +…
A: Total Cost in a flexible budget is based on the actual number of units produced. In the given…
Q: Golden Inc. produces swimsuits. The following budgeted and actual amounts are for 2020: Cost Budget…
A: Budget is the estimate made for future period of time. Budgets are compared with actual results in…
Q: 15,000 units sales volume to see if you get the same income as stated above Find the breakeven point…
A: Format of variable costing
Q: For the year 2018, a company provides the following information. Description Amount Budgeted output…
A: Budgeted/Standard raw material price = $0.20 Actual raw material price = $0.18 Actual quantity =…
Q: ABC Company is preparing its master budget for 2014. Relevant data pertaining to its sales, I…
A: The forecast of the estimated sales or the quantity of the production to be done is called budget.…
Q: The Baldwin Company, in its master budget for 2019, predicted total sales of $168,000, variable…
A: Operating income: Operating income can be defined as the income generated by a business entity…
Q: Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in…
A:
Q: Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours.…
A: The flexible budget report compares the actual costs incurred and budgeted costs at actual…
Q: Preparing a flexible budget performance report Cell Plus Technologies manufactures capacitors for…
A:
Q: Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours.…
A: Lets understand the basics. Flexible budget is prepared to calcualte the cost, sales and profit at…
Q: The next year's budget for Trend, Inc., a multi-product company, is given below: Product A Product B…
A: Sales mix variance is the variance in sales revenue due to difference in proportion of products…
Q: Collins Company is preparing its master budget for April. Use the given estimates to determine the…
A: Sales revenue is the revenue earned from the sale of product and services. Production units means…
Q: Collins Company is preparing its master budget for April. Use the given estimates to determine the…
A: Total sales = Sales of territory A + Sales of territory B Units produced = Sales + ending inventory…
Q: Bobs Consult, uses flexible budgeting for cost review purposes. The company’s master/static budget…
A: Supervisors Salary incurred for September month = $28000 Budgeted Supervisors salaries for the year…
Q: Westport Company is preparing its master budget for May. Use the estimates provided to determine the…
A: Solution a: Budgeted sales = 150000*$65 = $9,750,000
Q: The following data were gathered from the Pal Company's overhead costs for the January, 2020…
A: Solution: Fixed overhead volume variance is calculated using formula = Fixed overhead applied -…
Q: Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in…
A: Total variable cost of 120 chairs = Materials cost + Labor cost = $4,730+2,940 = $7,670
Q: Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Ivanhoe Manufacturing Co.s static budget at 13,500 units of production includes $87,750 for direct…
A: Direct material cost per unit = $20250/13500 =$1.50 per unit
Q: Elbert Company classifies its selling and administrative expense budget into variable and fixed…
A:
Q: Information relating to actual costs and variances for year 2019 is shown below. The budgeted…
A: Workings:
Q: Blossom Company's master budget reflects budgeted sales information for the month of June, 2022 as…
A: The sales budget details a company's sales expectations in both units and dollars for the budget…
Q: Jenner Company developed its annual manufacturing overhead budget for its master budget for 2008 as…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: What should total sales revenue be if territories A and B estimate sales of 10,000 and 13,000 units,…
A: No. of units sold in territory A (a) 10,000 No. of units sold in territory B (b) 13,000 Total…
Q: . What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000…
A:
Q: Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an…
A: Fixed cost are fixed in nature,it does not change with change in units of production.It remains…
Q: Sunland Company’s master budget reflects budgeted sales information for the month of June, 2022 as…
A: The sales budget is prepared to estimate the expected sales. It is also helpful to identify the gap…
Q: ts of $80,000. During the year ended December 31,2022, it produced 26,000 units.
A: Flexble budget represent the cost and revenue which directly vary with the change in output level.…
Q: Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture…
A: Flexible Budget Desk sales 194,040 186,480 / 148*154 Chair sales 32,640 28,560 / 56*64…
Q: Premised on past experience, Mayo Corp. adopted the following budgeted formula for estimating…
A: Flexible budget is that type of budget which changes with change in activity level. This type of…
Q: As sales manager, lohn was grven the following static budget report in the cothing dopartment of…
A: The flexible budget is prepared on the basis of actual results and standard rates. The variance is…
Phoenix Company’s 2019
a. Classify all items listed in the fixed budget as variable or fixed.
b. Also determine their amounts per unit or their amounts for the year, as appropriate.
c. Identify the unit variable costs in the format of variable costing, according to your findings in part a
d. Organize a template for variable costing income statements in which the sales volume is a variable.
e. Test your template for 15,000 units sales volume to see if you get the same income as stated above
f. Find the breakeven point and provide the income statement at break even
g. Provide income statement at sales volume 12,000, 14,000, 16,000, and 18,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Relevant data from the operating budget of The Framers are: Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May The beginning cash balance was $50,000 and a required minimum cash balance is $10,000. Prepare a cash budget for the first two quarters of the year.ework Required O Saved Help Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX CОМPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3,150,000 Cost of goods sold Direct materials $ 915,000 240,000 Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($60,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense 45,000 315,000 210,000 210,000 1,935,000 1,215,000 75,000 90,000 235,000 400,000 125,000 230,000 85,000 Salaries Entertainment expense 440,000 nces Income from operations $375,000 Problem 23-1A Part 1&2 Prev 1 3 of 8 Next > here to search PriSc Dele Ins C F5 F9 F10 F11 F12 F6 F7 F8 F1 F3 F4 F2 23 3 4. 6. 7 8. 9. T Y 11 D G H. K L A Z. C V M + II V B L.Required information [The following information applies to the questions displayed below.] Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3,000,000 Cost of goods sold Direct materials $975,000 225,000 60,000 300,000 195,000 200,000 Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense 1,955,000 1,045,000 75,000 105,000 250,000 430,000 125,000 241,000 90,000 Salaries Entertainment expense 456,000 Income from operations $ 159,000 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that…
- Using Actual Results for 2020, Prepare Budgeted Income Statement for 2021 2020 Revenues Actual Sales of Equipment $ 6,000,00O Sales of Maintenance Contracts 1,800,000 Total r evenues $ 7,800,000 Cost of goods sold 4,600,000 Gross margin $ 3,200,00O Operating expenses Marketing 600,000 Distribution 150,000 Customer maintenance 1,000,000 Administration 900,000 Total expenses 2,650,000 Operating Income $ 550,000 1. Selling prices of equipment are expected to increase by 10% as the economic recovery begins. 2. Selling price of maintenance contract is expected to remain unchanged. 3. Equipment sales in units are expected to increase by 6%, with a corresponding 6% growth in units of maintenance contracts. 4. Cost of each unit of equipment sold is expected to increase by 3% to pay for the necessary technology and quality improvements. 5. Marketing costs are expected to increase by $250,000, but administration costs are expected to remain the same. 6. Distribution costs vary in proportion to…Domino Consulting, budgeted overhead and other expenses as follows for the year ended December 31, 2023: Overhead: Rent $ 25,000 Repairs 10,000 Fuel 35,000 Maintenance 15,750 Supplies 6,100 Heat and light 20,250 Depreciation-computer 9,400 Miscellaneous 6,000 Depreciation-building 18,000 Depreciation-equipment…2. AP Sutton's Electronic Repair Shop has budgeted the following time and material for 2020. d Sutton's Electronic Repair Shop Budgeted Costs for the Year 2020 Time Charges Material Loading Charges Aatici, Shop employees' wages and benefits $108,000 Parts manager's salary and benefits $25,400 - Office employee's salary and benefits 13,600 23,500 Overhead (supplies, depreciation, advertising, utilities) 26,000 16,000 Total budgeted costs Sutton's budgets 5,000 hours of repair time in 2020 and will bill a profit of $10 per labor hour along with a 25% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,00o. $157,500 $55,000 ect 15 On January 5, 2020, Sutton's is asked to submit a price estimate to fix a 72-inch flat- screen TV. Sutton's estimates that this job will consume 4 hours of labor and $200 in parts. Instructions a. Compute the labor rate for Sutton's Electronic Repair Shop for the year 2020. b. Compute the material loading charge…
- MCQS: 1) Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,500,000 Cost of sales: Direct Material $ 500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000 Gross Profit $ 1,875,000 Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000 Operating Income $ 875,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in all variable costs, and a $45,000 increase in fixed costs. The operating profit for next year would be: A $477,500. B $492,500. C $831,250. D $552,500. 2) Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent…Relevant data from the operating budget of The Framers are: quarter 1 quarter 2 Sales $35,000 76,000 Direct Material purchases 25,000 26,000 Direct labor 30,000 24,000 Manufacturing OH 9,000 10,000 Selling & Admin 20,000 20,000 Depreciation included in Selling & Admin 1000 1,000 Cash Collections 34,000 76,000 Cash payments 29,000 20,000 Cash received: other 8,000 500 Dividend 0 500 Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May. The beginning cash balance was $40,000 and a required minimum cash balance is $8,000. Prepare a cash budget for the first two quarters of the year.Prepare a Budgeted Statement of Financial Position as at 31 December 2022 using the below information: Statement of comprehensive income for the year ended 31 December 2021Sales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable selling and administrative expenses (1 500 000)Fixed selling and administrative expenses (500 000)Net profit 2 250 000 Statement of financial position as at 31 December 2021ASSETSNon-current assets 800 000Property, plant and equipment 800 000Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000 4 200…
- The following information pertains to Yoyo Projects for the three months ended 31 May 2020: Actual Budgeted March R April R May R Revenue (20% for cash and 80% on credit) 360 000 380 000 400 000 Purchases (10% for cash 90% on credit) 240 000 280 000 320 000 Salaries and wages paid 40 000 60 000 60 000 Cash expenses 24 000 28 000 32 000 Depreciation 2 000 2 000 2 000 Additional Information: It is expected that debtors will settle their accounts as follows: 20 % in the month of invoice 70% in the month after the month of invoice, and 5% in the second month after the month of invoice The remaining 5% is usually written off as bad Trade creditors are paid in the month after purchase at a discount of 5%. 50% of the salaries and wages are weekly wages. Since wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were Expenses are paid as they The favourable…Required Information [The following information applies to the questions displayed below.] Phoenix Company's 2019 master budget Included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Sales Cost of goods sold Direct materials Direct labor Gross profit Selling expenses Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Packaging Shipping PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations Sales Variable costs Utilities PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Direct materials Direct labor Machinery repairs Depreciation-Plant equipment (straight-line) $ 960,000 240,000 Variable Amount per Unit 60,000 315,000 195,000 200,000 1,970,000 1,180,000…Automatic Irrigation, Inc. is preparing its manufacturing overhead budget for the 2022 year. Relevant data consist of the following: Qtr. 4 Qtr. 1 Qtr. 2 Qtr. 3 Control Units to be produced (by quarters): 6,000 10,000 12,000 9,000 Direct labor time: 1 hour per unit Variable overhead costs per direct labor hour: Indirect Materials $0.90; Indirect Labor $1.40; and Maintenance $0.50. Fixed overhead costs per quarter: Supervisory salaries $27,600; depreciation $4,000; and maintenance $1,900. Required Prepare the manufacturing overhead budget for the 2022 year showing quarterly data.