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. $ 4,050,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials $1,170,000 Direct labor 270,000 Machinery repairs (variable cost) 54,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities ($36,000 is variable) 196,000 Plant management salaries 230,000 Gross profit Selling expenses Packaging 72,000 Shipping 108,000 Sales salary (fixed annual amount) 260,000 General and administrative expenses Advertising expense 130,000 Salaries 241,000 Entertainment expense 100,000 Income from operations 2,235,000 1,815,000 440,000 471,000 904,000 Phoenix Company's actual income statement for 2019 follows. $ 4,803,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (21,000 units) Cost of goods sold Direct materials $1,382,000 Direct labor 324,000 Machinery repairs (variable cost) 55,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $157,500) 199,000 Plant management salaries 240,000 Gross profit Selling expenses Packaging 81,500 Shipping 118,500 Sales salary (annual) 277,000 General and administrative expenses Advertising expense 138,000 Salaries 241,000 Entertainment expense 103,500 Income from operations 2,515,000 2,288,000 477,000 482,500 $1,328,500 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 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs