Problem 23-2A 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 16.000 units $3,600,000 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation Plant equipment (straight-line) Utilities ($16,089 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales selery size annual amount) General and ministrative expenses Advertising expense Salaries Entertainment Expense Income from operations $ 800,000 240,000 32,000 315,000 166,000 215,000 1,768,000 1,832,000 48,000 80,000 260,000 388,000 133,000 251,000 100,000 484,000 $ 960,000 Phoenix Company's actual income statement for 2019 follows. Phoenix Company's actual income statement for 2019 follows. $4,353,000 PHOENIX COMPANY Statement of Income from Operations For Year Ended December 31, 2019 Sales (19,000 units) Cost of goods sold Direct materials $ 966,000 Direct labor 293,000 Machinery repairs (variable cost) 29,000 Depreciation Plant equipment (straight-line) 315,000 Utilities (fixed cost is $147,500) 165,500 Plant management salaries 225,000 Gross profit Selling expenses Packaging 54,750 Shipping 87,500 Sales salary (annual) 278,000 General and administrative expenses Advertising expense 141,000 Salaries 251,000 Entertainment expense 103,500 Income from operations 1,993,500 2,359,500 420,250 495,500 $1,443,750 Required: 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) 1. Prepare a flexible budget performance report for 2019. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) 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