Phoenix Companys 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 18,000 units.

PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019
Sales				$	3,600,000
Cost of goods sold
Direct materials	$	1,080,000
Direct labor		270,000
Machinery repairs (variable cost)		36,000
DepreciationPlant equipment (straight-line)		330,000
Utilities ($18,000 is variable)		168,000
Plant management salaries		200,000			2,084,000
Gross profit					1,516,000
Selling expenses
Packaging		54,000
Shipping		90,000
Sales salary (fixed annual amount)		250,000			394,000
General and administrative expenses
Advertising expense		129,000
Salaries		251,000
Entertainment expense		110,000			490,000
Income from operations				$	632,000

Phoenix Companys actual income statement for 2019 follows.

PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019
Sales (21,000 units)				$	4,248,000
Cost of goods sold
Direct materials	$	1,277,000
Direct labor		322,000
Machinery repairs (variable cost)		33,000
DepreciationPlant equipment (straight-line)		330,000
Utilities (fixed cost is $147,500)		167,750
Plant management salaries		210,000			2,339,750
Gross profit					1,908,250
Selling expenses
Packaging		60,250
Shipping		97,500
Sales salary (annual)		269,000			426,750
General and administrative expenses
Advertising expense		137,000
Salaries		251,000
Entertainment expense		113,500			501,500
Income from operations				$	980,000

Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)