Problem 23-4A Preparation and analysis of a flexible budget performance report L
ID: 2498746 • 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.)
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.
Explanation / Answer
PHOENIX COMPANY
Flexible Budget Report
For Year Ended December 31, 2013
Budgeted rate per unit of estimated units 17000
Budgeted
Flexible Budget at actual units
Actual at actual units
Total sales Units
17000
20000
20000
Selling price
3825000/17000
225
225
228.15
Sales
3825000
4500000
4563000
Variabe expense
Direct materials
57.35
975000.00
1147058.82
1163059.00
Direct labor
14.12
240000.00
282352.94
291353.00
Machinery repairs (variable cost)
4.41
75000.00
88235.29
80235.00
Utilities Variable portion
2.65
45000.00
52941.18
51941.00
Selling expenses
Packaging
5
85000
100000
98000.00
Shipping
6.76
115000.00
135294.12
127794.00
Contribution
2290000.00
2694117.65
2750618.00
Contribution per unit
134.71
134.71
137.53
Fixed cost
Depreciation—plant equipment
300000
300000
300000
Utilities fixed
160000
160000
160000
157500
Plant management salary
230000
230000
240000
Sales salary (annual)
260000
260000
279000
General and administrative expenses
Advertising expense
132000
132000
140000
Salaries
261000
261000
261000
Entertainment expense
100000
100000
103500
Income from Operation
847000.00
1251117.65
1269618.00
Profit Per unit
49.82
62.56
63.48
PHOENIX COMPANY
Flexible Budget Report
For Year Ended December 31, 2013
Budgeted rate per unit of estimated units 17000
Budgeted
Flexible Budget at actual units
Actual at actual units
Total sales Units
17000
20000
20000
Selling price
3825000/17000
225
225
228.15
Sales
3825000
4500000
4563000
Variabe expense
Direct materials
57.35
975000.00
1147058.82
1163059.00
Direct labor
14.12
240000.00
282352.94
291353.00
Machinery repairs (variable cost)
4.41
75000.00
88235.29
80235.00
Utilities Variable portion
2.65
45000.00
52941.18
51941.00
Selling expenses
Packaging
5
85000
100000
98000.00
Shipping
6.76
115000.00
135294.12
127794.00
Contribution
2290000.00
2694117.65
2750618.00
Contribution per unit
134.71
134.71
137.53
Fixed cost
Depreciation—plant equipment
300000
300000
300000
Utilities fixed
160000
160000
160000
157500
Plant management salary
230000
230000
240000
Sales salary (annual)
260000
260000
279000
General and administrative expenses
Advertising expense
132000
132000
140000
Salaries
261000
261000
261000
Entertainment expense
100000
100000
103500
Income from Operation
847000.00
1251117.65
1269618.00
Profit Per unit
49.82
62.56
63.48
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