Question

The following information applies to the questions displayed below.) 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 $ 3.750,000 Cost of goods sold Direct materials $ 60.000 Direct labor 280.000 Machinery repairs variable cost 45.000 Depreciation-Plant equipment straight-line) 300.000 Utes ($60.000 is variable Plant management salaries 20.000 120.000 Gross profit 1230.000 Selling expenses Packaging Shipping Sales salaryfwed annual amount General and administrive expenses dvertising expense 100.000 Salaries 230.000 Entertainment expense 30.000 10000 Income from operations $40.000 1. Award 33.33 points Required: 182. 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. PHOENIX COMPANY Pred Budget Report For Year Ended December 31, 2017 Flexible Budget Flexible Budget for Variable Amount Total Fed Units Sales Unit Sales of Cost of 14.000 21000 16 000 Direct Director Machinery repairs Packaging Contribution margin Fored Depreciation Plantemente US - Plant management stories Sales salary Advertising expense Sales Entertainment income from operations

Answer 1

Flexible Budget at PHOENIX COMPANY Flexible Budget Report For Year Ended December 31,2017 Flexible Budget Variable Amount Per Total Fixed Unit Costs $ 210.00 Unit Sales of Unit Sales of 14,000 16,000 $ 2,940,000 S 3,360,000 $ Sales Variable Costs Direct Materials Direct Labour Machinery Repairs Utilities Packing Shipping A A 64.00 14.00 3.00 4.00 5.00 7.00 $ $ $ $ $ $ 896,000 $ 196,000 $ 42,000 $ 56,000 $ 70,000 $ 98,000 $ 1,024,000 224,000 48,000 64,000 80,000 112,000 $ $ $ $ 97.00 $ $ S 1,358,000 $ 1,552,000 $ 1,582,000 $ 1,808,000 113.00 Total Variable Costs Contribution Margin Fixed Costs Depreciation - Plant Equipment (Straight-line) Utilities Plant Managers Salaries Sales Salary Advertising expense Salaries Entertainment Expense $ $ $ $ $ $ $ 300,000 $ 135,000 $ 210,000 $ 235,000 $ 100,000 $ 230,000 $ 80,000 $ 300,000 $ 135,000 $ 210,000 $ 235,000 $ 100,000 $ 230,000 $ 80,000 $ 300,000 135,000 210,000 235,000 100,000 230,000 80,000 SA 1,290,000 Total Fixed Costs Income From Operations $ S 1,290,000 $ 292,000 $ 1,290,000 518,000