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. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3,375,000 Cost of goods sold Direct materials $1,050,000 Direct labor 300,000 Machinery repairs (variable 45,000 cost) Depreciation-Plant equipment (straight-line) 300,000 Utilities ($30,000 is 180,000 variable) Plant management salaries 200,000 2,075,000 Gross profit 1,300,000 Selling expenses Packaging 60,000 Shipping 90,000 Sales salary (fixed annual 250,000 400,000 amount) General and administrative expenses Advertising expense 127,000 Salaries 241,000 Entertainment expense 110,000 478,000 Income from operations $ 422,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (18,000 units) $4, 128,000 Cost of goods sold Direct materials $1,276,000 Direct labor 368,000 Machinery repairs (variable cost) 46,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities (fixed cost is 182,750 $147,500) Plant management salaries 209,000 2,381,750 Gross profit 1,746,250 Selling expenses Packaging 69,500 Shipping 100,500 Sales salary (annual) 267,000 437,000 General and administrative expenses Advertising expense 134,000 Salaries 241,000 Entertainment expense 113,500 488,500 Income from operations $ 820,750 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 Actual Variances Budget Results Fav./ Unfav. Variable costs 0 Fixed costs