PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials 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 $ 960,000 225,000 $3,150,000 60,000 315,000 180,000 200,000 1,940,000 1,210,000 90,000 105,000 235,000 430,000
PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials 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 $ 960,000 225,000 $3,150,000 60,000 315,000 180,000 200,000 1,940,000 1,210,000 90,000 105,000 235,000 430,000
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...
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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.
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Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1
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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
Machinery repairs (variable cost)
Depreciation-Plant equipment (straight-line)
PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2019
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
Salaries
Entertainment expense
Income from operations
$ 960,000
225,000
60,000
315,000
180,000
200,000 1,940,000
1,210,000
90,000
105,000
235,000
$3,150,000
100,000
241,000
80,000
430,000
421,000
$ 359,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fddad5d86-091d-4493-90be-ef5753132bfd%2F8c590c65-790c-4d44-b4f5-94b199e66e13%2F83nmu3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1
Skip to question
[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
Machinery repairs (variable cost)
Depreciation-Plant equipment (straight-line)
PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2019
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
Salaries
Entertainment expense
Income from operations
$ 960,000
225,000
60,000
315,000
180,000
200,000 1,940,000
1,210,000
90,000
105,000
235,000
$3,150,000
100,000
241,000
80,000
430,000
421,000
$ 359,000
Transcribed Image Text: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.
Sales
Variable costs
Direct materials
Direct labor
Machinery repairs
Utilities
Packaging
Shipping
Total variable costs
Contribution margin
Fixed costs
Depreciation-Plant equipment (straight-line)
Advertising expense
Plant management salaries
Utilities
Sales salary
Salaries
Entertainment expense
Total fixed costs
Income from operations
PHOENIX COMPANY
Flexible Budgets
For Year Ended December 31, 2019
Flexible Budget
33
>>
Answer is not complete.
>>
Variable
Amount per
Unit
0.00
Total Fixed
Cost
$
0
Flexible Budget for:
Units
Unit
Sales of
14,000
Sales of
16,000
S
0
0
$
0
0
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