Nina Company prepared the following fixed budget for July using 7,800 units for budgeted sales. Actual sales were 7,500 units and actual costs are shown below.

Fixed Budget
For Month Ended July 31	Variable Amount per Unit	Total Fixed Cost	Fixed Budget (7,800 units)	Actual Results (7,500 units)
Sales	$ 100		$ 780,000	$ 766,550
Variable costs
Direct materials	35		273,000	277,600
Direct labor	15		117,000	114,100
Indirect materials	4		31,200	29,400
Sales commissions	11		85,800	81,550
Total variable costs	65		507,000	502,650
Contribution margin	$ 35		$ 273,000	$ 263,900
Fixed costs
DepreciationMachinery		$ 71,050	71,050	71,050
Supervisor salary		42,150	42,150	43,400
Insurance		10,450	10,450	10,450
DepreciationOffice equipment		7,700	7,700	7,700
Administrative salaries		33,900	33,900	31,000
Total fixed costs		$ 165,250	165,250	163,600
Income			$ 107,750	$ 100,300

Prepare a flexible budget performance report for July at activity level of 7,500 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)