Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units $3,750,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) utilities ($30,000 is variable) plant managenent salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $750,000 225,000 45,000 315,000 180.000 230,00 1.745,000 2,885,000 60,000 90.000 260.000 410,000 125,000 241,000 100,000 466,000 $1,129,000 Phoenix Company's actual income statement for 2019 follows, $4,563,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (18,000 units) Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities (fixed cost is 5148,000) Plant management salaries Gross profit 5.916,000 277,000 46,000 315,000 183,000 210.000 1,977,000 2.586,000 Check my work 60,000 90,000 260,000 410,000 Packaging Shipping Sales salary (Fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 125, eee 241,000 tee, see 466,000 $1,129,000 Phoenix Company's actual income statement for 2019 follows. $4,563,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (18,000 units) Cost of goods sold Direct materials $ 916,000 Direct labor 277,000 Machinery repairs (variable cost) 46,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $140,000) 183,000 Plant management salaries 240,000 Gross profit Selling expenses Packaging 69.750 Shipping 101,000 Sales salary (annual) 277,000 General and administrative expenses Advertising expense 134.000 Salaries 241,000 Entertainment expense 101.500 Incone from operations 1,977,000 2,586,000 447,750 478,500 $1,659,750 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav./Unfav. Variable costs Fixed costs