Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,20 units. Sales Costs PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials. Direct labor Sales staff commissions Depreciation-Machinery Income Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries. Depreciation-office equipment Income Direct materials. Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment $ 3,192,000 972,800 212,800 45,600 305,000 Phoenix Company reports the following actual results. Actual sales were 18,200 units. Sales (18,200 units) $ 3,867,500 Costa $ 1,179,360 262,080 45,500 305,000 208,000 196,000 212,800 253,000 643,400 191,000 $ 159,600 246,610 272,000 653,400 191,000 504,550

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…