Use the following information for the Problems below. (Algo) [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 15,200 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 $ 3,040,000 988,000 212,800 76,000 305,000 198,000 212,800 248,000 452,400 195,000 $ 152,000 Problem 23-2A (Algo) Preparing a flexible budget performance report LO P1 Phoenix Company reports the following actual results. Actual sales were 18,200 units. Sales (18,200 units) $ 3,685,500 Costs Direct materials Direct labor $ 1,197,560 262,080 Sales staff commissions 81,900 Depreciation-Machinery 305,000 Supervisory salaries 210,000 Shipping 246,610 Sales staff salaries (fixed annual amount) Administrative salaries 267,000 461,400 Depreciation-office equipment 195,000 Income 458,950 Required: Prepare a flexible budget performance report for the year. (Indicate the effect of each varlance by selecting "Favorable" or "Unfavorable". Select "No varlance" and enter "O" for zero varlance.) For Year Ended December 31 Sales Variable costs PHOENIX COMPANY Flexible Budget Performance Report Flexible Budget (18,200 units) Actual Results (18,200 units) Variances $ 3,040,000 $ 3,685,500 $ Favorable/Unfavorable 772,901 Favorable Direct materials Direct labor Sales staff commissions Shipping 988,000 212,800 78,000 212,800 1,197,560 262,080 81,900 246,610 209,560 Unfavorable 49,280 Unfavorable 5,900 Favorable 33,810 Favorable Total variable costs 1,489,600 1,788,150 Contribution margin 298,550 Unfavorable Favorable Fixed costs Depreciation-Machinery Supervisory salaries Sales staff salaries Administrative salaries Depreciation-Office equipment Total fixed costs Income 305,000 198,000 248,000 305,000 210,000 267,000 0 No variance 12,000 Unfavorable 19,000 Unfavorable 452,400 461,400 9,000 Unfavorable 195,000 195,000 0 No variance $ 1,398,400 152,000 $ 1,438,400 458,900 $ 40,000 Unfavorable 306,950 Favorable