Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units. Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($17,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Advertising expense Salaries Entertainment expense Income from operations Sales (20,000 units) Cost of goods sold Direct materials Direct labor Gross profit Selling expenses Phoenix Company's actual income statement for 2019 follows. Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities (fixed cost is $147,500) Plant management salaries. Packaging Shipping PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales salary (annual) General and administrative expenses $1,190,000 255,000 34,000 Advertising expense Salaries 300,000 167,000 230,000 Entertainment expense Income from operations 51,000 85,000 250,000 125,000 261,000 110,000 $1,416,000 308,000 31,000 300,000 166,750 240,000 57,500 92,500 268,000 134,000 261,000 113,500 $3,825,000 2,176,000 1,649,000 386,000 496,000 $ 767,000 $4,578,000 2,461,750 2,116,250 418,000 508,500 $1,189,750 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Variable costs Fixed costs PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. 0 0 0 0