Phoenix Company's 2017 master budget included the following foed budget report. It is based on an expected production and sales volume of 16,000 units. Required: 1. Prepare a flexible budget performance report for 2017, PHOENIX COMPANY Fixed Budget Report Por Year Ended December 31, 2017 $3,200,000 Cost of goods sold Direct materials $1,040,000 Direct labor 240,000 Machinery repairs (variable 32,000 cost) Depreciation-Plant equipment (straight-line) 330,000 Utilities ($15,000 is 176,000 variable) Plant management salaries 215,000 2,033,000 Gross profit 1,167,000 Selling expenses Packaging 48,000 Shipping 80,000 Sales salary (fixed annual 250,000 amount) 378,000 General and administrative expenses Advertising expense 131,000 Salaries 251.000 Entertainment expense 90.000 472.000 Income from operations $ 317,000 PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 Flexible Actual Variances Results Fav. Hintay Budget Variable costs Phoenix Company's actual income statement for 2017 follows. IIIIIIIII Fixed costs PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (19,000 units) $3,848,000 Cost of goods sold Direct materials $1,252,000 Direct labor 293,000 Machinery repairs variable 29,000 cost) Depreciation-Plant equipment (straight-line) 330,000 Utilities (fixed cost is 175,750 $157.500) Plant management salaries 225,000 2,304, 750 Gross profit Selling expenses Packaging 55,000 Shipping 87,500 Sales salary (annual) 266,000 408,500 General and administrative expenses Advertising expense 139,000 Salaries 251,000 Entertainment expense 93,500 483,500 Income from operations $ 651,250