Phoenix Companys 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units.

PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019
Sales				$	3,600,000
Cost of goods sold
Direct materials	$	880,000
Direct labor		240,000
Machinery repairs (variable cost)		64,000
DepreciationPlant equipment (straight-line)		330,000
Utilities ($48,000 is variable)		198,000
Plant management salaries		215,000			1,927,000
Gross profit					1,673,000
Selling expenses
Packaging		80,000
Shipping		112,000
Sales salary (fixed annual amount)		260,000			452,000
General and administrative expenses
Advertising expense		130,000
Salaries		261,000
Entertainment expense		90,000			481,000
Income from operations				$	740,000

Phoenix Companys actual income statement for 2019 follows.

PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019
Sales (19,000 units)				$	4,338,000
Cost of goods sold
Direct materials	$	1,060,000
Direct labor		294,000
Machinery repairs (variable cost)		68,000
DepreciationPlant equipment (straight-line)		330,000
Utilities (fixed cost is $148,000)		204,250
Plant management salaries		225,000			2,181,250
Gross profit					2,156,750
Selling expenses
Packaging		92,500
Shipping		125,500
Sales salary (annual)		278,000			496,000
General and administrative expenses
Advertising expense		138,000
Salaries		261,000
Entertainment expense		93,500			492,500
Income from operations				$	1,168,250

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