Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 18,000 units $4,500,000 DOW int rences PHOENIX COMPANY Fixed Budget Report Tor Year Ended December 31, 2019 Sales Cost of goods sold Direct materials $1,190,000 Direct labor 180,000 Machinery repairs (variable cost) 90,000 Depreciation-Plant equipment straight-line) 300,000 Utilities ($72,000 16 variable) 222,000 Plant management salaries 215,000 Gross profit Selling expenses Tackaging 108,000 shipping 144,000 Sales salary (fixed annual amount) 250.000 General and administrative expenses Advertising expense 125.000 Salaries 241,000 Entertainment expense 100,000 Income from operations 2,177,000 2,323,000 502,000 467.000 $1,354,000 Phoenix Company's actual income statement for 2019 follows. 55,298,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (21,000 units) Coat of goods sold Direct materials $1,331,000 Direct labor 219,000 Machinery repairs (variable cost) 96,000 Depreciation Plant equipment straight-line) 300.000 Phoenix Company's actual income statement for 2019 follows. ts $5,298,000 eBook Print eferences PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (21,000 units) Cost of goods sold Direct materials $1,381,000 Direct labor 219,000 Machinery repairs (variable cost) 96,000 Depreciation-Plant equipment (traight-line) 300,000 Utilities (fixed cost is $147,000) 230,000 Plant management salaries 224,000 Gross profit Selling expenses Packaging 123,750 Shipping 160,500 Salon salary (annual) 269,000 General and administrative expenses Advertising expense 133,000 Salaries 241,000 Entertainment expense 103,000 Income from operations 2,450,000 2,848,000 553,250 472,000 $1,817,750 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. Book Variable costs Print Herences 0 0 Fixed costs