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				$	3,000,000
Cost of goods sold
Direct materials	$	975,000
Direct labor		225,000
Machinery repairs (variable cost)		60,000
DepreciationPlant equipment (straight-line)		300,000
Utilities ($45,000 is variable)		195,000
Plant management salaries		200,000			1,955,000
Gross profit					1,045,000
Selling expenses
Packaging		75,000
Shipping		105,000
Sales salary (fixed annual amount)		250,000			430,000
General and administrative expenses
Advertising expense		125,000
Salaries		241,000
Entertainment expense		90,000			456,000
Income from operations				$	159,000

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)				$	3,648,000
Cost of goods sold
Direct materials	$	1,185,000
Direct labor		278,000
Machinery repairs (variable cost)		63,000
DepreciationPlant equipment (straight-line)		300,000
Utilities (fixed cost is $147,500)		200,500
Plant management salaries		210,000			2,236,500
Gross profit					1,411,500
Selling expenses
Packaging		87,500
Shipping		118,500
Sales salary (annual)		268,000			474,000
General and administrative expenses
Advertising expense		132,000
Salaries		241,000
Entertainment expense		93,500			466,500
Income from operations				$	471,000

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