Problem 23-2A 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 17000 units $3,825,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 1, 2019 Sales Cost of goods sold Direct saterials Direct labor Machinery repairs (variable cost) Depreciation Plant equipment (straight-line) Utilities ($51.000 es variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (Fixed annual mont) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $1,105,000 34e, 68, 313,NNO 211.000 210,000 2,269,00 1,556,000 5.000 119,000 260.00 464 13, 241, 0,00 1,00 21,000 Phoenix Company's actual income statement for 2019 follows. Phoenix Company's actual income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (20,000 units) $4,563,000 Cost of goods sold Direct materials $1,317,000 Direct labor 408,000 Machinery repairs (variable cost) 71,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities (fixed cost is $158,000) 217,000 Plant management salaries 240,000 2,568,000 Gross profit 1,995,000 Selling expenses Packaging 97,500 Shipping 132,500 Sales salary (annual) 278,000 508,000 General and administrative expenses Advertising expense 138,000 Salaries 241,000 Entertainment expense 103,000 482,000 Income from operations $1,805,000 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 Fay. Unfay. Variable costs Fixed costs 0