Maurice Tutor

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Category > Accounting Posted 17 Aug 2017 My Price 15.00

Phoenix CompanyAc

Phoenix CompanyAc€?cs 2013 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units.

PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2013

 

  Sales       $ 3,150,000
  Cost of goods sold          
     Direct materials $ 960,000      
     Direct labor   240,000      
     Machinery repairs (variable cost)   60,000      
     DepreciationAc€??plant equipment   330,000      
     Utilities ($45,000 is variable)   195,000      
     Plant management salaries   210,000     1,995,000
            
  Gross profit         1,155,000
  Selling expenses          
     Packaging   75,000      
     Shipping   105,000      
     Sales salary (fixed annual amount)   235,000     415,000
            
  General and administrative expenses          
     Advertising expense   125,000      
     Salaries   241,000      
     Entertainment expense   75,000     441,000
            
  Income from operations       $ 299,000
            

Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed.

 

 

 

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Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 07:08 PM My Price 15.00

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