Pebco Company's 2011 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units PEBCO COMPANY Fixed Budget Report For Year Ended December 31, 2011 Sales Cost of goods sold $3,825,000 Direct materials Direct labor Machinery repairs (variable cost) Depreciation-plant equipment Utilities ($50,000 is variable) Plant management salaries $ 975,000 255,000 75,000 315,000 210,000 215,000 2,045,000 Gross profit Selling expenses 1,780,000 Packaging Shipping Sales salary (fixed annual amount) 80,000 115,000 270,000 465,000 General and administrative expenses Advertising expense Salaries 30,000 251,000 100,000 Entertainment expense 481,000 Income from operations $ 834,000 Pebco Company's actual income statement for 2011 follows PEBCO COMPANY Statement of Income from Operations For Year Ended December 31, 2011 $4,563,000 Sales (20,000 units) Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-plant equipment Utilities (fixed cost is $157,500) Plant management salaries $1,164,059 307,000 79,235 315,000 215,824 226,000 2,307,118 Gross profit Selling expenses 2,255,882 Packaging Shipping Sales salary (annual) 91,368 127,794 289,000 508,162 General and administrative expenses Advertising expense Salaries 138,000 251,000 103,000 Entertainment expense 492,000 Income from operations $1,255,720 1. Prepare a flexible budget performance report for 2011. (Do not round your intermediate calculations and round your final answers to nearest dollar amount. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Leave no cells blank be certain to enter "O" wherever required. Omit the "$" sign in your response.) PEBCO COMPANY Flexible Budget Performance Report For Year Ended December 31, 2011 Flexible Budget Actual Results (Click to select) Click to select) Variable costs (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Click to select) Click to select) (Click to select) (Click to select) (Click to select) Click to select) Total variable costs (Click to select) Click to select) (Click to select) Fixed costs (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Click to select) (Click to select) (Click to select) (Click to select) Click to select) Click to select) (Click to select) Total fixed costs Click to select) Income from operations (Click to select)