23 ASSgment Phoenix Company's 2017 master budget Included the following fixed budget report. It is based on an expected production and sales! volume of 16,000 units. Kipped $4,000,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $900,000 Direct labor 240,000 Machinery repairs (variable cost) 48,000 Depreciation Plant equipment (straight-line) 315,000 Utilities ($32,000 is variable) 182,000 Plant management salaries 215,000 Gross profit Selling expenses Packaging 64,000 Shipping 96,000 Sales salary (fixed annual amount) 270.000 General and administrative expenses Advertising expense 127,000 Salaries 251,000 Entertainment expense 90,000 Income from operations 1,960,000 2,040,000 430,000 Terences 460,000 $1,142.000 Phoenix Company's actual income statement for 2017 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (19,000 units) cost of goods sold Direct materials $1.156,000 Direct labor 293, 000 Machinery repairs (variable cost) 49,000 Depreciation Plant equipment (straight-line) 315,000 utilities (fixed cost is $147,000) 184,250 Plant management salaries 225,000 Gross profit Selling expenses Packaging 73,000 Shipping 106,500 Sales salary (annual) 287.000 2,222,250 2,500, 750 466,500 Ch23 Assignment 287,000 466,500 Sales salary (annual) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 134,000 251.009 93.000 478,000 $1,646, 250 pots Skloped Required: 1. Prepare a flexible budget performance report for 2017 PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 21, 2017 Flexible Budget Actual Results Variances Fav. Unfav. Variable costs References Fixed costs