Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 18,000 units. $4,050,000 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 ($18,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $1,170,000 270,000 36,000 330,000 178,000 215,000 2,199,000 1,851,000 54,000 90,000 260,000 404,000 133,000 241,000 100,000 474,000 973,000 $ Phoenix Company's actual income statement for 2019 follows. $4,788,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (21,000 units) Cost of goods sold Direct materials $1,381,000 Direct labor 322,000 Machinery repairs (variable cost) 33,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities (fixed cost is $158,000) 178,250 Plant management salaries 225,000 Gross profit Selling expenses Packaging 60,750 Shipping 97,500 Sales salary (annual) 276,000 General and administrative expenses Advertising expense 142,000 Salaries 241,000 Entertainment expense 103,000 Income from operations 2,469,250 2,318,750 434,250 486,000 $1,398,500 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 0 0 Fixed costs 0 0 Fixed costs 0 0