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 Direct materials Direct labor Machinery repairs Depreciation-Plant equipment (straight-line) $ 960,000 240,000 60,000 315,000 195,000 200,000 75,000 90,000 235,000 100,000 241,000 80,000 Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items Isted in the fixed budget as variable or fixed. $3,150,000 Flexible Budget Variable Amount Total Fixed per Unit Cost 1,970,000 1,180,000 400,000 421,000 $ 359,000 Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000
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 Direct materials Direct labor Machinery repairs Depreciation-Plant equipment (straight-line) $ 960,000 240,000 60,000 315,000 195,000 200,000 75,000 90,000 235,000 100,000 241,000 80,000 Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items Isted in the fixed budget as variable or fixed. $3,150,000 Flexible Budget Variable Amount Total Fixed per Unit Cost 1,970,000 1,180,000 400,000 421,000 $ 359,000 Flexible Budget for: Units Sales Unit Sales of of 14,000 16,000
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
![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
75,000
90,000
235,000
Required:
1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all Items
listed in the fixed budget as variable or fixed.
100,000
241,000
80,000
$3,150,000
Total Fixed
Cost
400,000
421,000
$ 359,000
Flexible Budget for:
Units Sales Unit Sales of
of 14,000 16,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75d8f333-11d1-4432-9a73-7a65f0b6a787%2Fc50ab674-4ce1-4217-9dcc-4788c67953bb%2Fv2f2f1_processed.png&w=3840&q=75)
Transcribed Image Text: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
75,000
90,000
235,000
Required:
1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all Items
listed in the fixed budget as variable or fixed.
100,000
241,000
80,000
$3,150,000
Total Fixed
Cost
400,000
421,000
$ 359,000
Flexible Budget for:
Units Sales Unit Sales of
of 14,000 16,000
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