Required information [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,300 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 $ 3,060,000 979,200 229,500 76,500 300,000 200,000 229,500 250,000 450,300 192,000 $ 153,000
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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Required information
[The following information applies to the questions displayed below.]
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,300
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 (18,300 units)
Costs
Income
Direct materials
Direct labor
Sales staff commissions
Depreciation-Machinery
Phoenix Company reports the following actual results. Actual sales were 18,300 units.
Supervisory salaries
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-Office equipment
$ 3,060,000
979,200
229,500
76,500
300,000
200,000
229,500
250,000
450, 300
192,000
$ 153,000
$ 3,705,750
$ 1,185,840
281,820
82,350
300,000
214,000
266, 265
267,000
458,300
192,000
458,175](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5ec86e1-c595-42be-9f05-63cb3ab56fe4%2Fdbd615b2-36af-4174-bfc6-724fc81d3ac6%2F93kkm3j_processed.png&w=3840&q=75)
![Required:
Prepare a flexible budget performance report for the year.
Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero
variance.
For Year Ended December 31
Variable costs
Fixed costs
PHOENIX COMPANY
Flexible Budget Performance Report
Flexible
Actual Results
Budget (18,300 (18,300 units)
units)
0
0
0
Variances
Favorable or Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5ec86e1-c595-42be-9f05-63cb3ab56fe4%2Fdbd615b2-36af-4174-bfc6-724fc81d3ac6%2Fkf0vxq_processed.png&w=3840&q=75)
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