Phoenix Companys 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 18,000 units.

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 $1,170,000 Direct labor 360,000 Machinery repairs (variable cost) 90,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($72,000 is variable) 232,000 Plant management salaries 215,000 Gross profit Selling expenses Packaging 108,000 Shipping 144,000 Sales salary (fixed annual amount) 260,000 General and administrative expenses Advertising expense 132,000 Salaries 251,000 Entertainment expense 100,000 Income from operations 2,367,000 1,683,000 512,000 483,000 $ 688,000 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 $1,382,000 Direct labor 427,000 Machinery repairs (variable cost) 96,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities (fixed cost is $158,000) 241,250 Plant management salaries 225,000 Gross profit Selling expenses Packaging 123,250 Shipping 160,000 Sales salary (annual) 278,000 General and administrative expenses Advertising expense 139,000 Salaries 251,000 Entertainment expense 104,000 Income from operations 2,671,250 2,116,750 561,250 494,000 $1,061,500 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) 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