Check my work 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. points $3,600,000 eBook Reference PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales 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) 208,000 Plant management salaries 200,000 Gross profit Selling expenses 80,000 Shipping 112,000 sales salary (fixed annual amount) 250,000 General and administrative expenses Advertising expense 127.000 Salaries 261,000 ertainment expense 110,000 Income from operations 1,987,000 1,613,000 442,000 498,000 673,000 $ Phoenix Company's actual income statement for 2017 follows. PHOENIX COMPANY Statement of Income from Operations Phoenix Company's actual income statement for 2017 follows. $4,338,000 points eBook References PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (19,000 units) Cost of goods sold Direct materials $1,155,000 Direct labor 293,000 Machinery repairs (variable cost) 68,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $158,000) 214,000 Plant management salaries 211,000 Gross profit Selling expenses Packaging 92,500 Shipping 126,000 Sales salary (annual) 267,000 General and administrative expenses Advertising expense 135,000 Salaries 261,000 Entertainment expense 113,500 Income from operations 2,256,000 2,082,000 485,500 509,500 $1,087,000 Required: 1. Prepare a flexible budget performance report for 2017 PHOENIX COMPANY PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 Flexible Budget Actual Results Variances $ 4,338,000 Fav. / Unfav. Favorable Sales Variable costs Direct materials Direct labor 1,155,000 293,000 68,000 Machinery repairs Unfavorable Unfavorable Favorable Favorable Favorable Utilities Packaging Shipping ... Favorable 0 1,516,000 Unfavorable Favorable Total variable costs Contribution margin Fixed costs Depreciation-Plant equipment (straight-line) Utilities No variance Favorable Unfavorable Plant management salaries 293,000 68,000 Direct labor Machinery repairs Utilities Packaging Shipping Unfavorable Favorable Favorable Favorable Favorable 0 1,516,000 Unfavorable Favorable Total variable costs Contribution margin Fixed costs Depreciation Plant equipment (straight-line) Utilities Plant management salaries No variance Favorable Unfavorable Unfavorable Unfavorable Sales salary Advertising expense Salaries No variance Entertainment expense Unfavorable Total fixed costs Unfavorable Favorable Income from operations