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 $3,000,000 Cost of goods sold Direct materials $750,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation Plant equipment (straight-line) 330,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 215,000 1.775,000 Gross profit 1,225,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary fixed annual amount) 270,000 450,000 General and administrative expenses Advertising expense 133,000 Salaries 241,000 Entertainment expense 90,000 464,000 Income from operations $ 311,000 $3,663,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations Tor Year Ended December 31, 2019 Sales (18,000 units) Cost of goods sold Direct material $916,000 Direct labor 277,000 Machinery repairs (variable cost) 63.000 Depreciation Plant equipment (straight-line) 330.000 Utilities (fixed cost is $140,000) 201, 250 Plant management salaries 226.000 Gross profit Selling expenses Packaging 87,750 Shipping 118.500 Sales salary (annual) 207.000 General and administrative expenses Advertising expense 140,000 Salaries 241,000 Entertainment expense 93.500 Income from operations 2,013,250 1,649,750 493,250 474.500 $ 682,000 Required: 1. Prepare a flexible budget performance report for 2019, (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) 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. Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping Total variable costs 0 0 Fixed costs Depreciation--Plant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising experte Salaries Entertainment expense Totalfixed costs Income from operations