Beech Company produced and sold 112,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,250,000; variable costs, $843,000; and fixed costs, $260,000. The following actual nancial results are available for May. Actual Sales (112,000 units) $1,231,000 Variable costs 808,500 Fixed costs 260,000 Prepare a flexible budget performance report for May. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Sales 1,250,000 0 $ 1,231,000 0 19,000 0 Unfavorable Variable costs 843,000 0 808,500 0 (34,500) 0 Favorable Contribution margin 407,000 422,500 15,500 a Favorable Fixed bests 280,000 0 280,000 0 o No variance Income from operations 147,000 $ 162,500 15,500 a Favorable Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3, 600, 000 Cost of goods sold Direct materials $960, 000 Direct labor 240, 000 Machinery repairs (variable cost) 64, 000 Depreciation-Plant equipment (straight-line) 315, 000 Utilities ($48,000 is variable) 198, 000 Plant management salaries 230,000 2, 007,090 Gross profit 1, 593, 090 Selling expenses Packaging 80, 000 Shipping 112, 000 Sales salary ( fixed annual amount) 260, 000 452, 090 General and administrative expenses Advertising expense 133, 000 Salaries 251, 000 Entertainment expense 100,000 484, 090 Income from operations $ 657, 090Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) $4, 338, 000 Cost of goods sold Direct materials $1, 156, 000 Direct labor 293, 000 Machinery repairs (variable cost) 67,000 Depreciation-Plant equipment (straight-line) 315, 000 Utilities ( fixed cost is $147,500) 203, 750 Plant management salaries 240, 000 2, 274, 750 Gross profit 2, 063, 250 Selling expenses Packaging 92, 000 Shipping 126, 000 Sales salary (annual) 276, 000 494, 090 General and administrative expenses Advertising expense 141, 000 Salaries 251, 000 Entertainment expense 103, 000 495, 000 Income from operations $1, 074, 250c) Calculate and summarize Recalculate the Direct Labor Variances using the "corrected" information. You may want to reference your calculation on Q13 of HW 5. Make sure you indicate whether the variance is favorable or unfavorable and show your work. Fixed Overhead Variances Actual Fixed OH Costs Budgeted Overhead Standard Cost (FOH applied) Favorable/Unfavorable Fixed OH spending variance Fixed OH volume variance Total fixed overhead variance d) Summarize the components of overhead controllable variance in the table below. Favorable/Unfavorable Variable OH spending variance Variable OH efficiency variance Fixed OH spending variance Total OH controllable variance e) Give one possible reason for a favorable fixed overhead spending variance f) Give one possible reason for an unfavorable fixed overhead volume variance