Phoenix Companys 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units.

PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019
Sales				$	3,825,000
Cost of goods sold
Direct materials	$	1,020,000
Direct labor		340,000
Machinery repairs (variable cost)		51,000
DepreciationPlant equipment (straight-line)		315,000
Utilities ($34,000 is variable)		184,000
Plant management salaries		200,000			2,110,000
Gross profit					1,715,000
Selling expenses
Packaging		68,000
Shipping		102,000
Sales salary (fixed annual amount)		270,000			440,000
General and administrative expenses
Advertising expense		128,000
Salaries		251,000
Entertainment expense		100,000			479,000
Income from operations				$	796,000

Phoenix Companys actual income statement for 2019 follows.

PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019
Sales (20,000 units)				$	4,563,000
Cost of goods sold
Direct materials	$	1,217,000
Direct labor		408,000
Machinery repairs (variable cost)		52,000
DepreciationPlant equipment (straight-line)		315,000
Utilities (fixed cost is $147,500)		187,000
Plant management salaries		211,000			2,390,000
Gross profit					2,173,000
Selling expenses
Packaging		77,500
Shipping		113,000
Sales salary (annual)		287,000			477,500
General and administrative expenses
Advertising expense		137,000
Salaries		251,000
Entertainment expense		103,500			491,500
Income from operations				$	1,204,000

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