Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,500$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,255,000$

Costs

Direct materials $1,007,500$

Direct labor $248,000$

Sales staff commissions $77,500$

Depreciation$$Machinery $305,000$

Supervisory salaries $204,000$

Shipping $232,500$

Sales staff salaries $($fixed annual amount$)249,000$

Administrative salaries $576,750$

Depreciation$$Office equipment $192,000$

Income $ $162,750$

Phoenix Company reports the following actual results. Actual sales were $18,500$ units.

Sales $(18,500$ units$)$ $ $3,931,250$

Costs

Direct materials $ $1,217,300$

Direct labor $303,400$

Sales staff commissions $83,250$

Depreciation$$Machinery $305,000$

Supervisory salaries $215,000$

Shipping $269,175$

Sales staff salaries $($fixed annual amount$)267,000$

Administrative salaries $584,750$

Depreciation$$Office equipment $192,000$

Income $494,375$

Required:

Prepare a flexible budget performance report for the year.

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select $"$No variance" and enter $"0"$ for zero variance.