Answer Happy

Required Information [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. Sales Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery PHOENIX COMPANY Fixed Budget For Year Ended December 31 Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment Income Income Direct materials Direct labor Sales staff commissions Depreciation-Machinery Phoenix Company reports the following actual results. Actual sales were 18,000 units. Sales (18,000 units) Costs Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation Office equipment $ 3,000,000 975,000 225,000 60,000 300,000 200,000 225,000 250,000 411,000 195,000 $ 159,000 $ 3,648,000 $ 1,185,000 278,000 63,000 300,000 210,000 261,500 268,000 419,000 195,000 $ 468,500 Required: Prepare a flexible budget performance report for the year. (Indicate the effect of each varlance by selecting "Favorable" or "Unfavorable". Select "No varlance" and enter "O" for zero varlance.)

For Year Ended December 31 Variable costs Fixed costs PHOENIX COMPANY Flexible Budget Performance Report Flexible Budget (18,000 units) Actual Results (18,000 units) Variances Favorable/Unfavorable