Flexible Budget for Varying Levels of Activity Nashler Company has the following budgeted variable costs per unit produced: Direct materials $7.20 Direct labor 1.54 Variable overhead: Supplies 0.23 Maintenance 0.19 0.18 Power Budgeted fixed overhead costs per month include supervision of $98,000, depreciation of $76,000, and other overhead of $245,000. In March, Nashler Company produced 160,000 units and had the following actual costs: Direct materials $1,148,000 Direct labor 252,900 Supplies 37,400 Maintenance 30,350 Power 28,720 Supervision 99,400 Depreciation 76,000 Other overhead 244,300 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. If there is no variance, enter "O" for the amount and select "NA" in the last column. Nashler Company Performance Report Flexible Budget Actual Cost Variance Cost Favorable Direct materials 1,148,000 Unfavorable Direct labor 252,900 Unfavorable Supplies 37,400 Favorable 30,350 Maintenance Favorable 28,720 Power Unfavorable Supervision 99,400 NA 76,000 Depreciation Favorable 244,300 Other overhead $ Unfavorable 1,917,070 Total cost 2. What if Nashler Company's actual direct materials cost were $1,152,000? How would that affect the variance for direct materials? If an amount is zero, enter "0". The materials variance would be s 0 by $ The total cost variance would increase