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✓ West Hampton ' x W ScreeningWork X U ltiPro X Student Home * Ch 21 Homewe* Ch 21 Homeworx G Hutto Corp. has * Accounting que: x + - 0 X → C newconnect.mheducation.com/flow/connect.html Managed bookmarks Ch 21 Homework Saved Help Save & Exit Submit Check my work Required information Problem 21-1A Preparation and analysis of a flexible budget LO P1 (The following information applies to the questions displayed below) points eBook 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. Print $3,150,000 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 ($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 $ 915,000 210,000 45,000 315,000 195,000 220,000 1,900,000 1,250,000 90,000 90,000 235,000 415,000 125,000 230,000 75,000 430,000 485.000 $ < Prev 1 of 2 Next >

Answer 1

Flexible Budget for: PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Variable Total Fixed Amount per unit 210.00 Unit Sales of Unit Sales of 14000 16000 2940000 3360000 61.00 14.00 3.00 3.00 6.00 6.00 93.00 117.00 854000 196000 42000 42000 84000 84000 1302000 163 8000 976000 224000 48000 48000 96000 96000 1488000 1872000 Sales Variable Costs: Direct Materials Direct Labor Machinery Repairs Utilities Packaging Shipping Total Variable Costs Contribution Margin Fixed Costs: Depreciation-Plant Equipment Utilities Plant Management Salaries Sales Salary Advertising Salaries Entertainment Expense Total Fixed Costs Income from Operations 315000 150000 220000 235000 125000 230000 75000 1350000 315000 165000 190000 235000 125000 230000 85000 1345000 293000 315000 165000 190000 235000 125000 230000 85000 1345000 527000

Planning Budget:

Selling Price per unit = Sales / Sales Volume
Selling Price per unit = $3,150,000 / 15,000
Selling Price per unit = $210.00

Direct Materials per unit = Direct Materials / Sales Volume
Direct Materials per unit = $915,000 / 15,000
Direct Materials per unit = $61.00

Direct Labor per unit = Direct Labor / Sales Volume
Direct Labor per unit = $210,000 / 15,000
Direct Labor per unit = $14.00

Machinery Repairs per unit = Machinery Repairs / Sales Volume
Machinery Repairs per unit = $45,000 / 15,000
Machinery Repairs per unit = $3.00

Utilities per unit = Utilities / Sales Volume
Utilities per unit = $45,000 / 15,000
Utilities per unit = $3.00

Packaging per unit = Packaging / Sales Volume
Packaging per unit = $90,000 / 15,000
Packaging per unit = $6.00

Shipping per unit = Shipping / Sales Volume
Shipping per unit = $90,000 / 15,000
Shipping per unit = $6.00