Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costs Direct materials Direct labor Sales staff commissions Depreciation Machinery Supervisory salaries Income Incone PHOENIX COMPANY Fixed Budget For Year Ended December 31 Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation office equipment Phoenix Company reports the following actual results. Actual sales were 18,400 units. Sales (18,400 units) $ 3,910,000 Costs $ 1,210, 720 283, 368 64,400 385,000 288,608 Direct materials Direct labor Sales staff commissions SALE Depreciation Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation Office equipment Fixed costs For Year Ended December 31 Variable costs Required: Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "0" for zero variance.) $ 3, 234,608 1,081, 008 231, 808 61, 608 385,000 198, 008 231,000 255,008 595,708 194,000 267,729 273,000 684,708 194,000 499, 108 Budget (18,400 units) PHOENIX COMPANY Flexible Budget Performance Report Flexible Actual Results (18,400 units) Variances Favorable/Unfavorable

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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.