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 Income $ 3,234,000 985,600 231,000 61,600 305,000 198,000 231,000 254,000 613,100 193,000 $ 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 Sales staff commissions 64,400 Depreciation-Machinery 305,000 Supervisory salaries 210,000 Shipping 267,720 Sales staff salaries (fixed annual amount) Administrative salaries 272,000 621,100 Depreciation-Office equipment 193,000 501,100 Income 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.)