Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,000$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,150,000$

Costs

Direct materials $975,000$

Direct labor $225,000$

Sales staff commissions $75,000$

Depreciation$$Machinery $300,000$

Supervisory salaries $200,000$

Shipping $210,000$

Sales staff salaries $($fixed annual amount$)247,000$

Administrative salaries $568,500$

Depreciation$$Office equipment $192,000$

Income $ $157,500$

Phoenix Company reports the following actual results. Actual sales were $18,000$ units.

Sales $(18,000$ units$)$ $ $3,825,000$

Costs

Direct materials $ $1,184,400$

Direct labor $277,200$

Sales staff commissions $81,000$

Depreciation$$Machinery $300,000$

Supervisory salaries $213,000$

Shipping $243,900$

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

Administrative salaries $576,500$

Depreciation$$Office equipment $192,000$

Income $490,000$

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.