Problem 23-4A Preparation and analysis of a flexible budget performance report L
ID: 2487843 • Letter: P
Question
Problem 23-4A Preparation and analysis of a flexible budget performance report LO P1, P2, A1 Phoenix Company’s 2013 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units.
Prepare a flexible budget performance report for 2013. (Do not round intermediate calculations.)
Required: 1.Prepare a flexible budget performance report for 2013. (Do not round intermediate calculations.)
60612730-1 st-Exam × (40564 unread)-matt-exk Doc's Order Managemex- R Facebook AMAZING Landing Page × Y M Inbox (1,384)-matthjk2 × . SM HOME × Y Introduction to Financia XyCH 23 Homework REQL × Dezto. mheducation.com/hm.tpx ABP Phoenix Company's 2013 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, 2013 $3,400,000 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-plant equipment Utilities ($45,000 is variable) Plant management salaries $1,005,000 225,000 75,000 315,000 205,000 215,000 2,040,000 Gross proft Selling expenses 1,360,000 Packaging Shipping Sales salary (fixed annual amount) 80,000 120,000 260,000 460,000 General and administrative expenses Advertising expense Salaries Entertainment expense 127,000 251,000 90,000 468,000 Income from operations $ 432,000 Phoenix Company's actual income statement for 2013 follows PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2013 $4,078,000 Sales (20,000 units) Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-plant equipment Utilities (fixed cost is $157,000) Plant management salaries $1,198,353 273,706 79,235 315,000 209,191 224,000 2,299,485 Gross proft Selling expenses 1,778,515 Packaging Shipping Sales salary (annual) 91,368 133,176 277,000 501,544 General and administrative expenses Advertising expense Salaries Entertainment expense 135,000 251,000 93,000 479,000 Income from operations $ 797,971 2 10:47
Explanation / Answer
Flexible budget actual results variances F/Unf Variable cost: DM 1,182,353 1,198,353 (16,000) U DL 264,706 273,706 (9,000) U Mac repairs 88,235 79,235 9,000 F Utilies 52,941 52,191 750 F packaging 94,118 91,368 2,750 F Shipping 141,176 133,176 8,000 F total 1,823,529 1,828,029 (4,500) U Fixed cost Dep 315,000 315,000 - - Utilites 160,000 157,000 3,000 F Plant mangement salaries 215,000 224,000 (9,000) U Sales slaary 260,000 277,000 (17,000) U Advetising exp 127,000 135,000 (8,000) U Salaries 251,000 251,000 - Ent exp 90,000 93,000 (3,000) U total 1,418,000 1,452,000 (34,000) U
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