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.

$3,600,000 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 ($48,000 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 $1,120,000 320,000 64,000 315,000 208,000 230,000 2,257,000 1,343,000 80,000 112,000 270,000 462,000 134,000 251,000 110,000 495,000 $ 386,000 Phoenix Company's actual income statement for 2019 follows. $4,353,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) Cost of goods sold Direct materials $1,347,000 Direct labor 388,000 Machinery repairs (variable cost) 68,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $157,500) 213,750 Plant management salaries 241,000 Gross profit Selling expenses Packaging 92,250 Shipping 125,500 Sales salary (annual) 288,000 General and administrative expenses Advertising expense 141,000 Salaries 251,000 Entertainment expense 113,000 Income from operations 2,572,750 1,780, 250 505,750 505,000 769,500 $ Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, nfavorable, 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 0 Total variable costs Contribution margin Fixed costs DepreciationPlant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense Total fixed costs 0 0 Income from operations