$[$The following information applies to the questions displayed below.$]!$

Required Information

$[$The following information applles to the questions displayed below.$]$

Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,000$

units.

Phoenix Company reports the following actual results. Actual sales were $18,000$ units.

Required:

Prepare a flexible budget performance report for the year.

Note: Indicate the effect of each varlance by selectlng "Favorable" or "Unfavorable". Select $"$No varlance" and enter $"$O$"$ for zero

varlance.

Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,000$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,000,000$

Costs

Direct materials $975,000$

Direct labor $225,000$

Sales staff commissions $60,000$

Depreciation$$Machinery $300,000$

Supervisory salaries $200,000$

Shipping $225,000$

Sales staff salaries $($fixed annual amount$)250,000$

Administrative salaries $411,000$

Depreciation$$Office equipment $195,000$

Income $ $159,000$

Phoenix Company reports the following actual results. Actual sales were $18,000$ units.

Sales $(18,000$ units$)$ $ $3,648,000$

Costs

Direct materials $ $1,185,000$

Direct labor $278,000$

Sales staff commissions $63,000$

Depreciation$$Machinery $300,000$

Supervisory salaries $210,000$

Shipping $261,500$

Sales staff salaries $($fixed annual amount$)268,000$

Administrative salaries $419,000$

Depreciation$$Office equipment $195,000$

Income $ $468,500$

Required: