Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales Costs Direct materials Direct labor Sales staff commissions Supervisory salaries Depreciation-machinery Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Incone $3,000,000 1,001,000 231,000 46,200 295,000 205,000 215,600 247,000 489,200 196,000 $ 154,000 Phoenix Company reports the following actual results. Actual sales were 18,400 units Sales (18,400 units) Costs Direct materials Direct labor $ 3,726,000 $1,210,720 283,360 sales staff commissions 46,000 Depreciation-achinery 295,000 Supervisory salaries 216,000 shipping 249,320 Sales staff salaries (fixed annual amount) 268,000 Administrative salaries 496,200 Depreciation-office equipment 196,000 Income 465,400 Required: Prepare a flexible budget performance report for the year. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero variance. For Year Ended December 31 Variable costs Fixed costs PHOENIX COMPANY Flexible Budget Performance Report Flexible Budget (18,400 units) Actual Results Variances Favorable or Unfavorable (18,400 units)

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…