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.

Prepare a flexible budget performance report for 2019.

$4,500,000 $ 990,000 360,000 36,800 300,000 178,000 215,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($18,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 2,079,000 2,421,888 54,000 90,000 250,000 394,800 127,000 251,000 90,000 468,000 $1,559,000 $5,328,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (21,eee units) Cost of goods sold Direct materials $1,171,080 Direct labor 427,000 Machinery repairs (variable cost) 34,000 Depreciation--Plant equipment (straight-line) 300,000 Utilities (fixed cost is $157,000) 177,080 Plant management salaries 226,000 Gross profit Selling expenses Packaging 60,500 Shipping 98,000 Sales salary (annual) 267,080 General and administrative expenses Advertising expense 135,000 Salaries 251,000 Entertainment expense 94,000 Income from operations 2,335,000 2,993,800 425,500 480,000 $2,887,500 Required: 1. Prepare a fiexible budget performance report for 2019. (Indicate the effect of each varlance by select unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Faced costs