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. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales Costs 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 1,016, 400 246,400 61,600 295,000 196,000 231,000 246,000 439,600 194,000 $ 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 Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income $ 1,229,120 301, 760 64,400 295,000 207,000 267, 720 263,000 446, 600 194,000 457,400 Required: Prepare a flexible budget performance report for the year. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for variance.