15 Nina Company prepared the following fixed budget for July using 7.500 units for budgeted sales. Actual sales were 7,200 units and actual costs are shown below Fixed Budget Variable For Month Ended July 31 Amount per Total Fixed Fixed Budget Actual Results Unit Cost Sales (7.500 units) (7.200 units) $ 100 Variable costs $ 750,000 $ 737,000 Direct materials 35 Direct labor 262,500 266,800 Indirect materials 112,500 109,600 4 Sales commissions 30,000 28,200 82.500 78,400 Total variable costs 65 487,500 483,000 Contribution margin 535 $ 262,500 $ 254.000 Fixed costs Depreciation Machinery $ 68,200 68,200 63,200 Supervisor salary 40,500 40,500 41,600 Insurance 10,000 10,000 10,000 Depreciation office equipment 7,400 7,400 7.400 Administrative salaries 33.900 33.900 20,800 Total fixed costs $ 160,000 160,000 157,000 Income $ 102,500 $ 97,000 11 Prepare a flexible budget performance report for July at activity level of 7200 units Show variances between budgeted and actual amounts (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) NINA COMPANY Flexible Budget Performance Report Flexible Actual Budget Results (7.200 units) 17,200 units) For Month Ended July 31 Variances Favorable/Unfavorable Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total Variable Costs Contribution margin Fixed costs Depreciation-Machinery Supervisory salary Insurance Depreciation--Office equipment Administrative salaries Total Fixed Costs Income 0