Question

Fork A Served Help Save & Exit Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Check PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 $3,150,000 $930,000 240,000 60,000 330,000 195,000 190,000 Sales Cost of goods sold Direct materials 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 expense Salaries Entertainment expense Income from operations 1,945,000 1,205,000 75,000 105,000 235,000 415,000 100,000 230,000 85,000 415,000 375,000 $ 6 8 Next > < Prev 7 of 8 !!

Answer 1

PHOENIX COMPANY Flexible Budget For the year ended December 31'2019
Particulars	Flexible Budget		Flexible Budget
	Variable amount per unit	Total Fixed cost	Unit sales of14,000	Unit sales of 16,000
Sales			2,940,000.00	3,360,000.00
Total Costs:
Direct materials	62.00		868,000.00	992,000.00
Direct Labor	16.00		224,000.00	256,000.00
Machinery repairs	4.00		56,000.00	64,000.00
Depreciation		330,000.00	330,000.00	330,000.00
Utilities	3.00	150,000.00	192,000.00	198,000.00
Plant Mnaagement salaries		190,000.00	190,000.00	190,000.00
Selling expenses - Packaging	5.00		70,000.00	80,000.00
Selling expenses - Shipping	7.00		98,000.00	112,000.00
Selling expenses - Sales salary		235,000.00	235,000.00	235,000.00
General and admin expenses		415,000.00	415,000.00	415,000.00
Total Costs:			2,678,000.00	2,872,000.00
Income from operations			262,000.00	488,000.00