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 15,000 units. Sales PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 $3,375,000 Cost of goods sold Direct materials $1,050,000 Direct labor 225,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($30,000 is variable) 190,000 Plant management salaries 230,000 2,040,000 Gross profit 1,335,000 Selling expenses Packaging 60,000 Shipping 90,000 Sales salary (fixed annual amount) 260,000 410,000 General and administrative expenses Advertising expense 132,000 Salaries 251,000 Entertainment expense 110,000 493,000 Income from operations $ 432,000 Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (18,000 units) $4,128,000 Cost of goods sold Direct materials $1,277,000 Direct labor 278,000 Machinery repairs (variable cost) 46,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities (fixed cost is $157,500) 192,750 Plant management salaries 239,000 2,332,750 Gross profit 1,795,250 Selling expenses Packaging 69,250 Shipping 100,000 Sales salary (annual) 276,000 445,250 General and administrative expenses Advertising expense 140,000 Salaries 251,000 Entertainment expense 113,500 Income from operations 504,500 $ 845,500 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)