Refer to the information in Problem 23-1A. Phoenix Company’s actual income statement follows.

Required

1. Prepare a flexible budget performance report for 2019.

2. Compute both the (a) sales variance and (b) direct materials cost variance.

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Statement of Income from Operations For Year Ended December 31, 2019 $3,648,000 Sales (18,000 units) . Cost of goods sold Direct materials... Direct labor..... $1,185,000 278,000 Machinery repairs (variable cost) 63,000 Depreciation-Plant equipment 300,000 Utilities (fixed cost is $147,500)... Plant management salaries.. Gross profit.... Selling expenses 200,500 210,000 2,236,500 1,411,500 Packaging.... 87,500 Shipping... 118,500 Sales salary (annual) 268,000 474,000 General and administrative expenses 132,000 Advertising expense Salaries.... 241,000 Entertainment expense. 93,500 466,500 $ 471,000 Income from operations