PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2015 Sales $3,600,000 Cost of goods sold Direct materials $960,000 Direct labor 320,000 Machinery repairs (variable cost) 48,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities ($32,000 is variable) 192,000 Plant management salaries 200,000 2,035,000 Gross profit 1,565,000 Selling expenses Packaging 64,000 Shipping 96,000 Sales salary (fixed annual amount) 260,000 420,000 General and administrative expenses Advertising expense 134,000 Salaries 261,000 Entertainment expense 100,000 495,000 Income from operations S 650,000 Phoenix Company's actual income statement for 2019 follows. $4,338,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) Cost of goods sold Direct materials $1,155,000 Direct labor 388,000 Machinery repairs (variable cost) 49,000 Depreciation-plant equipment (straight-line) 315,000 Utilities (l'ixed cost is $158,000) 195, 250 Plant management salaries 211,000 Gross profit Selling expenses Packaging 73,250 Shipping 106,500 Sales salary (annual) 278,000 General and administrative expenses Advertising expense 142,000 Salaries 261,000 Entertainment expense 104,000 Income from operations 2, 313, 250 2,024, 750 457, 750 507,000 $1,060,000 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. S 220 Sales Variable costs 0 Fixed costs 0 Problem 23-2A Preparing and analyzing a flexible budget performance report LO P1, P2, A1 Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sale volume of 16,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales COM O goods sold CS600.000