Homework SourseO Not secure l eztomheducationcomhmtpx IThe following inform
O Not secure l ezto.mheducation.com/hm.tpx IThe following information applies to the questions displayed below Phoenix Company\'s 2015 master budget included the following fied budget repor expected production and sales volume of 15,000 units Fixed Budget Report For Year Ended December 31, 2015 $3,000,000 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-plant equipment (straight-ine) Utilities ($45,000 is variable) Plant management salaries $ 975,000 225,000 60,000 300.000 195,000 200,000 1955,000 Gross profit Selling expenses 1,045,000 Packaging Shipping Sales salary (fixed annual amount) 75,000 105,000 250.000 430.000 General and administrative expenses Advertising expense Salaries Entertainment expense 125,000 241,000 90.000 456,000 Income from operations $ 159,000 References Section Break Problem 2-IA . Preparation and,anofy 5. 5 B8 nointe
Solution
Solution:
| Part 2: Phoneix Company | ||||
| Fixed Budget Report | ||||
| For the year ended 31 December 2015 | ||||
| Particulars | Flexible Budget | Flexible Budget for | ||
| Variable Amount per unit | Total Fixed Cost | Unit Sales of 14000 | Unit Sales of 16000 | |
| Sales | 200 | $2,800,000.00 | $3,200,000.00 | |
| Variable Cost: | ||||
| Direct Material | 65 | $910,000.00 | $1,040,000.00 | |
| Direct Labor | 15 | $210,000.00 | $240,000.00 | |
| Machinery repairs | 4 | $56,000.00 | $64,000.00 | |
| Utilities | 3 | $42,000.00 | $48,000.00 | |
| Packaging | 5 | $70,000.00 | $80,000.00 | |
| Shipping | 7 | $98,000.00 | $112,000.00 | |
| Total Variable Cost | 99 | $1,386,000.00 | $1,584,000.00 | |
| Contribution Margin | 101 | $1,414,000.00 | $1,616,000.00 | |
| Fixed Cost: | ||||
| Depreciation - Plant & Equipment (Straight Line) | $300,000.00 | $300,000.00 | $300,000.00 | |
| Utilities | $150,000.00 | $150,000.00 | $150,000.00 | |
| Plant management salaries | $200,000.00 | $200,000.00 | $200,000.00 | |
| Sales Salary | $250,000.00 | $250,000.00 | $250,000.00 | |
| Advertising Expense | $125,000.00 | $125,000.00 | $125,000.00 | |
| Salaries | $241,000.00 | $241,000.00 | $241,000.00 | |
| Entertainment Expenses | $90,000.00 | $90,000.00 | $90,000.00 | |
| Total Fixed Cost | $1,356,000.00 | $1,356,000.00 | $1,356,000.00 | |
| Income from operation | $58,000.00 | $260,000.00 |
