Question

Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an...

Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units.

PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2017
Sales $ 3,000,000
Cost of goods sold
Direct materials $ 915,000
Direct labor 210,000
Machinery repairs (variable cost) 45,000
Depreciation—Plant equipment (straight-line) 300,000
Utilities ($60,000 is variable) 180,000
Plant management salaries 190,000 1,840,000
Gross profit 1,160,000
Selling expenses
Packaging 75,000
Shipping 90,000
Sales salary (fixed annual amount) 235,000 400,000
General and administrative expenses
Advertising expense 125,000
Salaries 230,000
Entertainment expense 90,000 445,000
Income from operations $ 315,000

Problem 21-1A Part 1&2

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.

0 0
Add a comment Improve this question Transcribed image text
Answer #1
PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2017
Flexible Budget Flexible Budget for:
Variable Amount per Unit Total Fixed Cost Units Sales of 14,000 Unit Sales of 16,000
Sales 200 2800000 3200000
Variable costs:
Direct materials 61 854000 976000
Direct labor 14 196000 224000
Machinery repairs 3 42000 48000
Utilities 4 56000 64000
Packaging 5 70000 80000
Shipping 6 84000 96000
Total variable costs 93 1302000 1488000
Contribution margin 107 1498000 1712000
Fixed costs
Depreciation—Plant equipment (straight-line) 300000 300000 300000
Advertising expense 125000 125000 125000
Entertainment expense 90000 90000 90000
Plant management salaries 190000 190000 190000
Utilities 120000 120000 120000
Sales salary 235000 235000 235000
Salaries 230000 230000 230000
Total fixed costs 1290000 1290000 1290000
Income from operations 208000 422000
Add a comment
Know the answer?
Add Answer to:
Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production a...

    Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,150,000 Cost of goods sold Direct materials $ 900,000 Direct labor 210,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 190,000 1,855,000 Gross profit 1,295,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed...

  • Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production a...

    Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,000,000 Cost of goods sold Direct materials $ 945,000 Direct labor 240,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($30,000 is variable) 195,000 Plant management salaries 220,000 1,975,000 Gross profit 1,025,000 Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed...

  • Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an...

    Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,150,000 Cost of goods sold Direct materials $ 900,000 Direct labor 210,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 190,000 1,855,000 Gross profit 1,295,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed...

  • Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an...

    Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 18,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 4,500,000 Cost of goods sold Direct materials $ 1,170,000 Direct labor 360,000 Machinery repairs (variable cost) 36,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($18,000 is variable) 168,000 Plant management salaries 230,000 2,279,000 Gross profit 2,221,000 Selling expenses Packaging 54,000 Shipping 90,000 Sales salary (fixed...

  • Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an...

    Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,150,000 Cost of goods sold Direct materials $ 915,000 Direct labor 210,000 Machinery repairs (variable cost) 45,000 Depreciation—Plant equipment (straight-line) 330,000 Utilities ($60,000 is variable) 195,000 Plant management salaries 200,000 1,895,000 Gross profit 1,255,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed...

  • Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an...

    Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,000,000 Cost of goods sold Direct materials $ 945,000 Direct labor 240,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($30,000 is variable) 195,000 Plant management salaries 220,000 1,975,000 Gross profit 1,025,000 Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed...

  • Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an...

    Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. РHOENIX OСOMPANY Fixed Budget Report For Year Ended December 31, 2017 $3,300,000 Sales Cost of goods sold Direct materials $915,000 225,000 60,000 330,000 195,000 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 Advertising...

  • Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an...

    Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,000,000 Cost of goods sold Direct materials $ 945,000 Direct labor 240,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($30,000 is variable) 195,000 Plant management salaries 220,000 1,975,000 Gross profit 1,025,000 Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed...

  • Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production a...

    Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,150,000 Cost of goods sold Direct materials $ 900,000 Direct labor 210,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 190,000 1,855,000 Gross profit 1,295,000 Selling expenses Packaging 75,000 Shipping 90,000 Sales salary (fixed...

  • Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an...

    Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $3,000,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($30,880 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT