Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units. $3,625,000 PHOENIX COMPANY Pixed Budget Report Tor Year Ended December 31, 2019 Sales Cost of goods sold Direct materials $1,020,000 Direct labor 255,000 Machinery repairs (variable cost) 68,000 Depreciation Plant equipment (straight-line) 315,000 Utilities ($51,000 in variable) 201,000 Plant management salaries 215,000 Gross profit Selling expenses Packaging 85,000 Shipping 119,000 Sales salary (fixed annual amount) 260,000 General and administrative expenses Advertising expense 134,000 Salaries 241,000 Entertainment expense 110,000 Income from operations 2,074,000 1,751,000 464,000 485,000 $ B02,000 Phoenix Company's actual income statement for 2019 follows. $4,548,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (20,000 units) Cost of goods sold Direct materials $1,217,000 Direct labor 309,000 Machinery repairs (variable cost) 71,000 Depreciation-plant equipment (straight-line) 315,000 Utilities (fixed cost is $147,500) 207,000 Plant management salaries 225,000 Gross profit Selling expenses Packaging 97,500 Shipping 133,000 Sales salary (annual) 279,000 General and administrative expenses Advertising expense 143,000 Salaries 241,000 Entertainment expense 114,000 Income from operations 2,344,000 2,204,000 509,500 498,000 $1,196,500 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