Required information [The following information applies to the questions displayed below.] Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costs PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment Income $ 3,080,000 1,001,000 215,600 61,600 295,000 200,000 246,400 248,000 461,400 197,000 $ 154,000 Phoenix Company reports the following actual results. Actual sales were 18,400 units. Sales (18,400 units). Costs Direct materials Direct labor $ 3,726,000 $ 1,210,720 264,960 Sales staff commissions 64,400 Depreciation-Machinery 295,000 Supervisory salaries 212,000 Shipping 286,120 Sales staff salaries (fixed annual amount) Administrative salaries 266,000 470,400 Depreciation-Office equipment 197,000 Income 459,400 Required: Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero variance.)