performance report LO P1, P2, A1

Phoenix Companys 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units.

PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015

Sales				$	4,250,000
Cost of goods sold
Direct materials	$	1,190,000
Direct labor		255,000
Machinery repairs (variable cost)		51,000
Depreciationplant equipment (straight-line)		330,000
Utilities ($34,000 is variable)		194,000
Plant management salaries		200,000			2,220,000
Gross profit					2,030,000
Selling expenses
Packaging		68,000
Shipping		102,000
Sales salary (fixed annual amount)		260,000			430,000
General and administrative expenses
Advertising expense		127,000
Salaries		251,000
Entertainment expense		90,000			468,000
Income from operations				$	1,132,000

Phoenix Companys actual income statement for 2015 follows.

PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2015

Sales (20,000 units)				$	5,063,000
Cost of goods sold
Direct materials	$	1,417,000
Direct labor		308,000
Machinery repairs (variable cost)		52,000
Depreciationplant equipment (straight-line)		330,000
Utilities (fixed cost is $157,500)		196,750
Plant management salaries		209,000			2,512,750
Gross profit					2,550,250
Selling expenses
Packaging		77,000
Shipping		112,000
Sales salary (annual)		277,000			466,000
General and administrative expenses
Advertising expense		136,000
Salaries		251,000
Entertainment expense		93,500			480,500
Income from operations				$	1,603,750

Required:
1.	Prepare a flexible budget performance report for 2015.

PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2015 Flexible Budget Actual ResultsVariances Fav./Unfav Sales 5,000.00ofs 5,063,000S 63,000Favorable Variable costs Direct materials Direct labor Machinery repairs Utilities Unfavorable Unfavorable Favorable Favorable avorable Favorable Shipping otal variable costs Unfavorable Favorable Fixed costs Depreciation-plant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense o variance Favorable rable Unfavorable Unfavorable rable otal fixed costs Unfavorable Income from operations Favorable