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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 15,000 units. $3,375,000 PHOENIX COMPANY Fixed Budget Report Sales For Year Ended December 31, 2019 Cost of goods sold Direct materials $825,000 Direct labor 150,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 315,000 Utilities ($30,000 is variable) 190,000 Plant management salaries 200,000 Gross profit Selling expenses 60,000 Packaging 90,000 Shipping 260,000 Sales salary (fixed annual amount) General and administrative expenses 132,000 Advertising expense 251,000 Salaries 100,000 Entertainment expense Income from operations 1.725,000 1,650,000 410,000 483,000 $ 757,000 Phoenix Company's actual income statement for 2019 follows. $4, 113,000 PHOENIX COMPANY Statement of Income Erom Operations For Year Ended December 31, 2019 Sales (18,000 units) Cost of goods sold Direct materials $1,007,000 Direct labor 188,000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment (straight-line) 315000 Utilities (fixed cost is $157,500) 1921750 Plant management salaries 212000 Gross profit Selling expenses Packaging 20,000 Shipping 100 500 Sales salary annual) 227000 General and administrative expenses Advertising expense 140,000 Salaries 251 000 Entertainment expense 103,000 Income from operations 22958750 2, 154,250 447,500 35 494,000 $1,212, 750 Flexible Budget Performance Report For Year Ended December 31, 2019 Flexible Budget Actual Results Variances Fay. Unfav. Variable costs 0 0 Fixed costs 0 0