Phoenix Company's 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 $935,000 Direct labor 255,000 Machinery repairs (variable cost) 51,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities ($34,800 is variable) 184,000 Plant management salaries 230,000 1,970,000 Gross profit 1,855,000 Selling expenses Packaging 68,000 Shipping 102,000 Sales salary (fixed annual amount) 270,000 440,000 General and administrative expenses Advertising expense 130,000 Salaries 261,000 Entertainment expense 90,000 481,000 Income from operations $ 934,000 Phoenix Company's 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 $1,116,000 Direct labor 308,000 Machinery repairs (variable cost) 51,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $147,500) 186,750 Plant management salaries 239,000 2,215,750 Gross profit 2,347,250 Selling expenses Packaging 77,500 Shipping 113,000 Sales salary (annual) 286,000 476,589 General and administrative expenses Advertising expense 138,000 Salaries 261,000 Entertainment expense 93,500 492,500 Income from operations $1,378,250 Required: 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 0 Total variable costs Fixed costs Depreciation--Plant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense 0 0 Total fixed costs Income from operations