Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $3,375, eee PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($30,eee is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 825, eee 225, eee 45, eee 315, eee 190, eee 215, eee 1,815,000 1,560,000 6e, eee 90, eee 278, eee 420,000 135, 241,000 100,eee 476,600 $ 664,000 Phoenix Company's actual income statement for 2017 follows. $4,098,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (18,000 units) Cost of goods sold Direct materials $1,005,000 Direct labor 279,000 Machinery repairs (variable cost) 46,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $157,000) 192, 250 Plant management salaries 225,000 Gross profit Selling expenses Packaging 69,750 Shipping 100,500 Sales salary (annual) 288,000 General and administrative expenses Advertising expense 142,000 Salaries 241,000 Entertainment expense 104,000 Income from operations 2,062,250 2,035,750 458, 250 487,000 $1,090,500 Required: 1. Prepare a flexible budget performance report for 2017 PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs