Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Incone $ 3,234,000 985,600 231,000 77,000 305,000 204,000 215,600 252,000 607,100 195,000 $ 161,700 Phoenix Company reports the following actual results. Actual sales were 18,400 units. Sales (18,400 units) Costs Direct materials Direct labor $ 3,910,000 $ 1,192,320 283,360 82,800 Depreciation-Machinery. Sales staff commissions Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income 305,000 219,000 249,320 271,000 617,100 195,000 495,100 Required: Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero variance.)