Question: Required information Use the following information for the Problems below. (Static) Skip to question [The following information applies to the questions displayed below.] Phoenix Company
Required information
Use the following information for the Problems below. (Static)
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[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 15,000 units.
| PHOENIX COMPANY | |
|---|---|
| Fixed Budget | |
| For Year Ended December 31 | |
| Sales | $ 3,000,000 |
| Costs | |
| Direct materials | 975,000 |
| Direct labor | 225,000 |
| Sales staff commissions | 60,000 |
| DepreciationMachinery | 300,000 |
| Supervisory salaries | 200,000 |
| Shipping | 225,000 |
| Sales staff salaries (fixed annual amount) | 250,000 |
| Administrative salaries | 411,000 |
| DepreciationOffice equipment | 195,000 |
| Income | $ 159,000 |
Problem 21-2A (Static) Preparing a flexible budget performance report LO P1
Phoenix Company reports the following actual results. Actual sales were 18,000 units.
| Sales (18,000 units) | $ 3,648,000 |
|---|---|
| Costs | |
| Direct materials | $ 1,185,000 |
| Direct labor | 278,000 |
| Sales staff commissions | 63,000 |
| DepreciationMachinery | 300,000 |
| Supervisory salaries | 210,000 |
| Shipping | 261,500 |
| Sales staff salaries (fixed annual amount) | 268,000 |
| Administrative salaries | 419,000 |
| DepreciationOffice equipment | 195,000 |
| Income | $ 468,500 |
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.)
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