Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units. Sales Costs PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment Income $3,020,000 996,600 211,400 60,400 295,000 198,000 226,500 253,000 432,100 196,000 $ 151,000 Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1 Required: 1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18.100 units. Prepare a simple budgeted income statement if 18.100 units are sold
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units. Sales Costs PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment Income $3,020,000 996,600 211,400 60,400 295,000 198,000 226,500 253,000 432,100 196,000 $ 151,000 Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1 Required: 1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18.100 units. Prepare a simple budgeted income statement if 18.100 units are sold
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 34BEA: Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the...
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Concept explainers
Master Budget
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 helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
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 income and expenses.
Question
Transcribed Image Text:Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100
units.
Sales
Costs
PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Direct materials
Direct labor
Sales staff commissions
Depreciation-Machinery
Supervisory salaries)
Shipping
Sales staff salaries (fixed annual amount)
Administrative salaries
Depreciation-Office equipment
Income
$3,020,000
996,600
211,400
60,400
295,000
198,000
226,500
253,000
432,100
196,000
$ 151,000
Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1
Required:
1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units.
3. The company's business conditions are improving. One possible result is a sales volume of 18.100 units. Prepare a simple budgeted
income statement if 18.100 units are sold
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