Static Budget for 2019 for Jackal Co. was based on sales volume of 16,000 units and on budgeted production. $3,200,000 JACKAL CO. Static Budget Report For Year Ended December 31, 2019 Sales COGS Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($48,000 is variable) Plant management salaries Gross profit Selling expenses Production supplies Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 800,000 240,000 64,000 315,000 208,000 230,000 1,857,000 1,343,000 80,000 112,000 250,000 442,000 129,000 261,000 100,000 490,000 $ 411,000 2019 actual income statement for Jackal Co.: $3,863,000 JACKAL CO. Income Statement For Year Ended December 31, 2019 Sales (19,000 units) COGS Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities (fixed cost is $157,000) Plant management salaries Gross profit Selling expenses Production supplies Shipping Sales salary (annual) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 966,000 293,000 68,000 315,000 213,500 241,000 2,096,500 1,766,500 92,250 125,500 266,000 483,750 137,000 261,000 103,500 501,500 $ 781,250 Required: 1. Prepare a flex budget report for 2019. (State each variance as favorable, unfavorable, and No variance.) JACHALCU. Flex Budget For Year Ended December 31, 2019 Flex Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs