Problem 08-2A Preparing and analyzing a flexible budget performance report LO P1, P2, A1 Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 16,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3,680,000 Cost of goods sold Direct materials $800,000 Direct labor 160,000 Machinery repairs (variable cost) 48,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($32,000 is variable) 192,000 Plant management salaries 215,000 1.715,000 Gross profit 1,885,000 Selling expenses Packaging 64,000 Shipping 96,000 Sales salary (fixed annual amount) 250,000 410,000 General and administrative expenses Advertising expense 126,000 Salaries 261,000 Entertainment expense 110,000 497,000 Income from operations $ 978,000 Income from operations $ 978,000 Phoenix Company's actual income statement for 2019 follows. $4,323,000 Book Print rences PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) Cost of goods sold Direct materials $966,000 Direct labor 198,800 Machinery repairs (variable cost) 49,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities (fixed cost is $157,500) 194,500 Plant management salaries 225,000 Gross profit Selling expenses Packaging 73,500 Shipping 106,500 Sales salary (annual) 269,000 General and administrative expenses Advertising expense 135,000 Salaries 261,000 Entertainment expense 114,000 Income from operations 1,932,500 2,390,580 449,000 510,000 $1,431,500 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs