Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production a

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Phoenix Company S 2019 Master Budget Included The Following Fixed Budget Report It Is Based On An Expected Production A 1 (48.07 KiB) Viewed 45 times

Phoenix Company S 2019 Master Budget Included The Following Fixed Budget Report It Is Based On An Expected Production A 2 (41.6 KiB) Viewed 45 times

Phoenix Company S 2019 Master Budget Included The Following Fixed Budget Report It Is Based On An Expected Production A 3 (69.36 KiB) Viewed 45 times

Phoenix Company's 2019 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, 2019 Sales $4,250,000 Cost of goods sold $935,000 Direct materials Direct labor 255,000 Machinery repairs (variable cost) 85,000 300,000 Depreciation-Plant equipment (straight-line) Utilities ($68,000 is variable) 228,000 Plant management salaries 200,000 2,003,000 Gross profit 2,247,000 Selling expenses Packaging 102,000 Shipping 136,000 260,000 498,000 Sales salary (fixed annual amount) General and administrative expenses 129,000 Advertising expense Salaries 251,000 Entertainment expense 110,000 490,000 Income from operations. $1,259,000
Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (20,000 units) Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities (fixed cost is $158,000) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (annual) General and administrative expenses. Advertising expense Salaries Entertainment expense Income from operations $5,048,000 $1,116,000 309,000 91,000 300,000 237,250 209,000 2,262,250 2,785,750 117,750 152,000 278,000 547,750 137,000 251,000 113,000 501,000 $1,737,000
Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs 0 Fixed costs