Fixed Budget ReportFor Year Ended December 31, 2019Sales ....$3,000,000Cost of goods soldDirect materials .Direct labor......$975,000225,000Machinery repairs (variable cost)60,000Depreciation-Plant equipment (straight-line) .Utilities ($45,000 is variable) .300,000195,000....Plant management salaries200,0001,955,000Gross profit...1,045,000Selling expensesPackaging..75,000Shipping...105,000Sales salary (fixed annual amount) .250,000430,000General and administrative expensesAdvertising expense125,000Salaries.....241,000Entertainment expense90,000456,000$ 159,000Income from operationsa. Classify all items listed in the fixed budget as variable or fixed. Also determine theiramounts per unit or their amounts for the year, as appropriate.b. Identify the unit variable costs in the format of variable costing, according to yourfindings in part ac. Organize a template for variable costing income statements in which the sales volumeis a variable. Test your template for 15,000 units sales volume to see if you get thesame income as stated aboved. Find the breakeven point and provide the income statement at break evene. Provide income statement at sales volume 12,000, 14,000, 16,000, and 18,000 3. Phoenix Company's 2019 master budget included the following fixed budget report. It is basedon an expected production and sales volume of 15,000 units.

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Description: Fixed Budget ReportFor Year Ended December 31, 2019Sales ....$3,000,000Cost of goods soldDirect materials .Direct labor......$975,000225,000Machinery repairs (variable cost)60,000Depreciation-Plant equipment (straight-line) .Utilities ($45,000 is va

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Business

Accounting

Fixed Budget Report For Year Ended December 31, 2019 Sales ... Cost of goods sold Direct materials ..... Direct labor..... $975,000 225,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12PA: Before the year began, the following static budget was developed for the estimated sales of 100,000....

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