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Phoenix company_flexible budget | Accounting Assignment: I need help writing a research paper.
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 |
|
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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