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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of $15,100$ units.

PHOENIX COMPANY

Fixed Budget

For Year Ended December $31$

Sales $ $3,171,000$

Costs

Direct materials $996,600$

Direct labor $241,600$

Sales staff commissions $75,500$

Depreciation$$Machinery $295,000$

Supervisory salaries $196,000$

Shipping $211,400$

Sales staff salaries $($fixed annual amount$)247,000$

Administrative salaries $550,350$

Depreciation$$Office equipment $199,000$

Income $ $158,550$

Problem $21-2$A $($Algo$)$ Preparing a flexible budget performance report LO P$1$

Phoenix Company reports the following actual results. Actual sales were $18,100$ units.

Sales $(18,100$ units$)$ $ $3,846,250$

Costs

Direct materials $ $1,209,080$

Direct labor $296,840$

Sales staff commissions $81,450$

Depreciation$$Machinery $295,000$

Supervisory salaries $210,000$

Shipping $245,255$

Sales staff salaries $($fixed annual amount$)267,000$

Administrative salaries $559,350$

Depreciation$$Office equipment $199,000$

Income $483,275$

Required:

Prepare a flexible budget performance report for the year.

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select $"$No variance" and enter $"0"$ for zero variance.