Question: Use the following information for the Problems below. (Algo) Skip to question [The following information applies to the questions displayed below.] Phoenix Company reports the
Use the following information for the Problems below. (Algo)
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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 15,400 units.
| PHOENIX COMPANY | |
| Fixed Budget | |
| For Year Ended December 31 | |
| Sales | $ 3,234,000 |
|---|---|
| Costs | |
| Direct materials | 1,016,400 |
| Direct labor | 231,000 |
| Sales staff commissions | 46,200 |
| DepreciationMachinery | 305,000 |
| Supervisory salaries | 200,000 |
| Shipping | 246,400 |
| Sales staff salaries (fixed annual amount) | 254,000 |
| Administrative salaries | 576,300 |
| DepreciationOffice equipment | 197,000 |
| Income | $ 161,700 |
Problem 21-2A (Algo) Preparing a flexible budget performance report LO P1
Phoenix Company reports the following actual results. Actual sales were 18,400 units.
| Sales (18,400 units) | $ 3,910,000 |
|---|---|
| Costs | |
| Direct materials | $ 1,229,120 |
| Direct labor | 283,360 |
| Sales staff commissions | 46,000 |
| DepreciationMachinery | 305,000 |
| Supervisory salaries | 211,000 |
| Shipping | 286,120 |
| Sales staff salaries (fixed annual amount) | 271,000 |
| Administrative salaries | 584,300 |
| DepreciationOffice equipment | 197,000 |
| Income | 497,100 |
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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