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	$ 3,000,000
Costs
Direct materials	975,000
Direct labor	225,000
Sales staff commissions	60,000
DepreciationMachinery	300,000
Supervisory salaries	200,000
Shipping	225,000
Sales staff salaries (fixed annual amount)	250,000
Administrative salaries	411,000
DepreciationOffice equipment	195,000
Income	$ 159,000

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

Sales (18,000 units)	$ 3,648,000
Costs
Direct materials	$ 1,185,000
Direct labor	278,000
Sales staff commissions	63,000
DepreciationMachinery	300,000
Supervisory salaries	210,000
Shipping	261,500
Sales staff salaries (fixed annual amount)	268,000
Administrative salaries	419,000
DepreciationOffice equipment	195,000
Income	$ 468,500

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 "0" for zero variance.)