Problem 21-2A Preparing and analyzing a flexible budget performance report LO P1, P2, A1 Phoenix Company's 2019 master budget Included the following fixed budget report. It is based on an expected production and sales volume of 17,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $3,400,000 Cost of goods sold Direct materials $1,020,000 Direct labor 255,000 Machinery repairs (variable cost) 68,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities ($51,000 is variable) 211,000 Plant management salaries 200,000 2,084,000 Gross profit 1,316,000 Selling expenses Packaging 85,000 Shipping 119,000 Sales salary (fixed annual amount) 260,000 464,000 General and administrative expenses Advertising expense 128,000 Salaries 241,000 Entertainment expense 100,000 469,000 Income from operations $ 383,000 Phoenix Company's actual Income statement for 2019 follows. PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (20,000 units) $4,048,000 Cost of goods sold Direct materials $1,216,000 Direct labor 308,000 Machinery repairs (variable cost) 71,000 Depreciation-Plant equipment (straight-line) 330,000 Utilities (fixed cost is $158,000) 217,000 Plant management salaries 209,000 2,351,000 Gross profit 1,697,000 Selling expenses Packaging 97,250 Shipping 132,500 Sales salary (annual) 276,000 505,750 General and administrative expenses Advertising expense 136,000 Salaries 241,000 Entertainment expense 103,500 480,500 Income from operations $ 710,750 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.) PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs 0 0 Fixed costs 0 0