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Required information Use the following information for the Problems below. (Algo) Skip to...

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Accounting

Required information
Use the following information for the Problems below. (Algo)
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[The following information applies to the questions displayed below.]
Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units.
PHOENIX COMPANY
Fixed Budget
For Year Ended December 31
Sales $ 3,020,000
Costs
Direct materials 996,600
Direct labor 226,500
Sales staff commissions 60,400
DepreciationMachinery 300,000
Supervisory salaries 202,000
Shipping 211,400
Sales staff salaries (fixed annual amount)251,000
Administrative salaries 427,100
DepreciationOffice equipment 194,000
Income $ 151,000
Problem 8-1A (Algo) Preparing and analyzing a flexible budget LO P1
Required:
1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units.
3. The companys business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple budgeted income statement if 18,100 units are sold.
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