Phoeni Companys 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 $ 1,120,000 Direct labor 160,000 Machinery repairs (variable cost) 64,000 DepreciationPlant equipment (straight-line) 315,000 Utilities ($48,000 is variable) 208,000 Plant management salaries 230,000 2,097,000 Gross profit 1,503,000 Selling expenses Packaging 80,000 Shipping 112,000 Sales salary (fixed annual amount) 260,000 452,000 General and administrative expenses Advertising expense 129,000 Salaries 251,000 Entertainment expense 90,000 470,000 Income from operations $ 581,000 Phoenix Companys 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 $ 1,347,000 Direct labor 198,000 Machinery repairs (variable cost) 68,000 DepreciationPlant equipment (straight-line) 315,000 Utilities (fixed cost is $157,500) 214,000 Plant management salaries 239,000 2,381,000 Gross profit 1,957,000 Selling expenses Packaging 92,000 Shipping 125,500 Sales salary (annual) 277,000 494,500 General and administrative expenses Advertising expense 137,000 Salaries 251,000 Entertainment expense 94,000 482,000 Income from operations $ 980,500 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)