Phoenix Companys 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				$	3,375,000
Cost of goods sold
Direct materials	$	825,000
Direct labor		225,000
Machinery repairs (variable cost)		60,000
DepreciationPlant equipment (straight-line)		330,000
Utilities ($45,000 is variable)		205,000
Plant management salaries		200,000			1,845,000
Gross profit					1,530,000
Selling expenses
Packaging		75,000
Shipping		105,000
Sales salary (fixed annual amount)		270,000			450,000
General and administrative expenses
Advertising expense		129,000
Salaries		261,000
Entertainment expense		100,000			490,000
Income from operations				$	590,000

Phoenix Companys actual income statement for 2019 follows.

PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019
Sales (18,000 units)				$	4,128,000
Cost of goods sold
Direct materials	$	1,006,000
Direct labor		278,000
Machinery repairs (variable cost)		64,000
DepreciationPlant equipment (straight-line)		330,000
Utilities (fixed cost is $157,500)		211,000
Plant management salaries		210,000			2,099,000
Gross profit					2,029,000
Selling expenses
Packaging		87,250
Shipping		118,000
Sales salary (annual)		287,000			492,250
General and administrative expenses
Advertising expense		136,000
Salaries		261,000
Entertainment expense		103,000			500,000
Income from operations				$	1,036,750

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