Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales 252 Cost of goods sold Direct materials Direct labor $3,200,000 $800,000 320,000 Machinery repairs (variable cost) 80,000 Depreciation-Plant equipment (straight-line) 330,000 Utilition ($64,000 in variable) 214,000 Plant management salaries 215,000 2,039,000 Gross profit 1,161,000 Selling expenses Packaging 96,000 Shipping 120,000 Sales salary (fixed annual amount) 270,000 494,000 Ceneral and administrative expenses Advertising expense 131,000 Salaries 261,000 Entertainment expense 100,000 492,000 Income from operations $ 175,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) Cost of goods sold $3,863,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) $3,863,000 Cost of goods sold Direct naterials $1,060,000 Direct labor 389,000 Machinery repairs (variable cost) 86,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities (fixed cost is $147,000) 222,500 Plant management salaries 225,000 2,312,500 Gross profit 1,550,500 Selling expenses Packaging 111,750 Shipping 144,500 Sales salary (annual) 288,000 544,250 General and administrative expenses Advertising expense 139,000 Salaries 261,000 Entertainment expense 103,500 503,500 $ 502,750 Income from operations Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Variable costs Fixed costs PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav./Unfav. 0 Fixed costs 0