2 Nina Company prepared the following fixed budget for July using 7,780 units for budgeted sales. Actual sales were 7,480 units and actual costs are shown below. Sales commissions 2 points eBook Print References For Month ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Fixed Budget Variable Amount per Total Fixed Cost Unit $ 100 Fixed Budget (7,780 units) $ 778,000 272,300 116,700 31,120 Actual Results (7,480 units) 35 15 4 $ 764,580 276,880 113,800 29,320 11 Total variable costs 65 85,580 505,700 81,340 501,340 Contribution margin $ 35 $ 272,300 $263,240 Insurance Administrative salaries Total fixed costs Income Fixed costs Depreciation-Machinery Supervisor salary Depreciation-office equipment $ 70,860 70,860 70,860 42,040 42,040 43,280 10,420 10,420 10,420 7,680 7,680 7,680 33,900 33,900 30,920 $164,900 163,160 $ 100,000 Prepare a flexible budget performance report for July at activity level of 7,480 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) 164,900 $ 107,400 NINA COMPANY Flexible Budget Performance Report Flexible Budget Actual Results (7,480 units) (7,480 units) eBook Print References For Month Ended July 31 $ Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total Variable Costs Contribution margin Fixed costs 748,000 0 Variances Favorable/Unfavorable