Problem 8-2A Preparation and analysis of a flexible budget performance report LO P1, P2, A1 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. $3,000,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $825,000 Direct labor 300,000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 195,000 Plant management salaries 215,000 Gross profit Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 270,000 General and administrative expenses Advertising expense 133,000 Salaries 251,000 Entertainment expense 100,000 Income from operations 1,895,000 1,105,000 450,000 44.000 Phoenix Company's actual income statement for 2017 follows PHOENIX COMPANY statement of Income from Operations For Year Ended December 31, 2017 Sales (18,000 units) $3,663,000 Phoenix Company's actual income statement for 2017 follows. $3,663,000 PHOENIX COMPANY statement of Income from operations For Year Ended December 31, 2017 Sales (18,000 units) cost of goods sold Direct materials $1,007,000 Direct labor 369,000 Machinery repairs (variable cost) 63,000 Depreciation-Plant equipment (straight-line) 300,000 Utilities (fixed cost is $148,000) 201,500 Plant management salaries 224,000 Gross profit Selling expenses Packaging 87,000 Shipping 118,500 Sales salary (annual) 287,000 General and administrative expenses Advertising expense 140,000 Salaries 251,000 Entertainment expense 103,000 Income from operations 2,164,500 1,498,500 492,500 494,000 $ 512,000 Required: 1. Prepare a flexible budget performance report for 2017, Answer is not complete. PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 ELE For Year Ended December 31, 2017 Flexible Actual Budget Results Variances Fav./Unfav. Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping ololololo Total variable costs Contribution margin Fixed costs Depreciation-Plant equipment (straight- line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense Total fixed costs Income from operations