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Problem 23-2A Preparing and analyzing a flexible budget performance report LO P1, P2, A1 Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 18,000 units. PHOENIX COMPANY Fixed Budget Report Por Year Ended December 31, 2019 Sales $4,050,000 Cost of goods sold Direct materials $990,000 Direct labor 270,000 Machinery repairs (variable coat) 90,000 Depreciation-plant equipment (straight-line) 315,000 Utilities ($72,000 is variable) 222,000 Plant management salaries 230,000 2,117,000 Gross profit 1,933,000 Selling expenses Packaging 108,000 Shipping 144,000 Sales salary fixed annual amount) 260,000 512,000 General and administrative expenses Advertising expense 130,000 Salaries 251,000 Entertainment expense 90,000 471,000 Income from operations $ 950,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (21,000 units) Cost of goods sold $4,788,000 Prey 1 of 2 Next > Phoenix Company's actual income statement for 2019 follows. $4,788,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (21,000 units) Cost of goods sold Direct materials $1,172,000 Direct labor 323,000 Machinery repairs (variable cost) 96,000 Depreciation--Plant equipment (straight-line) 315,000 Utilities (fixed cost is $148,000) 231,500 Plant management salaries 240,000 Gross profit Selling expenses Packaging 123,000 Shipping 160,500 Sales salary (annual) 278,000 General and administrative expenses Advertising expense 139,000 Salaries 251,000 Entertainment expense 94,000 Income from operations 2,377,500 2,410,500 561,500 484,000 $1,365,000 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav./Unfav. Prey 1 of 2 Next FRXIU Duugel Terrormance report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs 0 0 Fixed costs 0 0 Prey 1 of 2 Next >

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