Refer to the information in Problem 23-3A. Phoenix Companys actual income statement for 2013 follows. Required 1.

Refer to the information in Problem 23-3A. Phoenix Company’s actual income statement for 2013 follows.

Required
1. Prepare a flexible budget performance report for 2013.
Analysis Component
2. Analyze and interpret both the
(a) Sales variance
(b) Direct materialsvariance.

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PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31,2013 Sales (18,000 units). Cost of goods sold $3,648,000 Direct materials$1,185,000 Direct abor. Machinery repairs (variable cost) Depreciation- plant equipment.... Utilities (fixed cost is $147.500 200,500 Plant management salaries... 278,000 63,000 300,000 210,000 2.236,500 Gross profit Selling expenses ,411,500 Packaging... Shipping.. Sales salary (annual)... 87,500 118,500 268,000 474,000 General and administrative expenses Advertising expense .. . . Salaries.. Entertainment expense.. .. 132,000 241,000 93,500 466 500 Income from operations $ 471.000