Phoenix company_flexible budget | Accounting homework help

Homework Paper Help

Phoenix Company’s 2013 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units.

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

Sales			$	4,250,000
Cost of goods sold
Direct materials	$	975,000
Direct labor		240,000
Machinery repairs (variable cost)		60,000
Depreciation—plant equipment		315,000
Utilities ($55,000 is variable)		215,000
Plant management salaries		215,000		2,020,000

Gross profit				2,230,000
Selling expenses
Packaging		80,000
Shipping		110,000
Sales salary (fixed annual amount)		250,000		440,000

General and administrative expenses
Advertising expense		126,000
Salaries		251,000
Entertainment expense		100,000		477,000

Income from operations			$	1,313,000

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Phoenix company_flexible budget | Accounting homework help

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