prepare a flexible budget performance report for 2017

Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. $3,375,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 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 $ 825,000 300,000 60,000 315,000 195,000 200,000 1,895,000 1,480,000 75,000 105,000 260,000 440,000 131,000 261,000 100,000 492,000 548,000 $ Phoenix Company's actual income statement for 2017 follows. $4,128,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2017 Sales (18,000 units) Cost of goods sold Direct materials $1,005,000 Direct labor 369,000 Machinery repairs (variable cost) 63,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $147,000) 200,000 Plant management salaries 211,000 Gross profit Selling expenses Packaging 87,500 Shipping 118,500 Sales salary (annual) 277,000 General and administrative expenses Advertising expense 138,000 Salaries 261,000 Entertainment expense 104,000 Income from operations 2,163,000 1,965,000 483,000 503,000 979,000 $ Required: PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 Flexible Budget Actual Results Variances Fav. / Unfav. i Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping I 0 0 Total variable costs Contribution margin i Fixed costs DepreciationPlant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense C Total fixed costs Income from operations