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Phoenix company_flexible budget | Accounting homework 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.

 

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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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