Nina Company prepared the following fixed budget for July using 7,600 units for budgeted sales. Actual sales were 7,300 units and actual costs are shown below. For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total variable costs Contribution margin Fixed costs Depreciation Machinery Supervisor salary Insurance Depreciation-office equipment Administrative salaries Total fixed costs Income Fixed Budget Variable Amount per Total Fixed Unit $ 100 Cost Fixed Budget (7,600 units) $ 760,000 266,000 114,000 30,400 83,600 Actual Results (7,300 units) $ 746,850 270,400 111,100 28,600 79,450 489,550 $ 257,300 35 15 4 11 65 494,000 $ 35 $ 266,000 $ 69,150 69,150 69,150 41,050 41,050 42,200 10,150 10,150 10,150 7,500 7,500 7,500 33,900 33,900 30,200 $ 161,750 161,750 159,200 $ 104,250 $ 98,100 Prepare a flexible budget performance report for July at activity level of 7,300 units. Show variances between budgeted and actual amounts. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. NINA COMPANY Flexible Budget Performance Report For Month Ended July 31 Flexible Budget Actual Results Variances Favorable or Unfavorable (7,300 units) (7,300 units) Sales Variable costs Direct materials $ 730,000 $ 746,850 Favorable 255,500 270,400 Unfavorable Direct labor 109,500 111,100 Unfavorable Indirect materials Sales commissions Total Variable Costs 29,200 80,300 474,500 0 Fixed costs Contribution margin Depreciation Machinery Supervisory salary Insurance 255,500 257,300 28,600 Favorable 79,450 Favorable Unfavorable Favorable 69,150 41,050 69,150 No variance 42,200 Unfavorable 10,150 Depreciation Office equipment 7,500 Administrative salaries Total Fixed Costs 33,900 161,750 Income $ 93,750 $ 0 98,100 10,150 No variance 7,500 No variance 30,200 Favorable Favorable Favorable