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. 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 35 15 4 11 65 $ 35 $ 70,860 Fixed Budget (7,780 units) $ 778,000 272,300 116,700 31,120 85,580 505,700 $ 272,300 70,860 Actual Results (7,480 units) $ 764,580 276,880 113,800 29,320 81,340 501,340 $ 263,240 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 $ 164,900 164,900 163,160 $ 107,400 $ 100,080 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.) For Month Ended July 31 Answer is not complete. NINA COMPANY Flexible Budget Performance Report Variances Flexible Actual Budget Results Favorable/Unfavorable (7,480 (7,480 units) units) Sales Variable costs Direct materials Direct labor Indirect materials $ 748,000 $ 764,580 $ 16,580 Favorable 261,800 276,880 15,080 Unfavorable 112,200 113,800 1,600 Unfavorable 29,920 29,320 (600) Favorable Sales commissions 82,280 81,340 (940) Favorable Total Variable Costs 486,200 501,340 15,140 Unfavorable Contribution margin 261,800 263,240 1,440 Favorable Fixed costs Depreciation-Machinery Supervisory salary Insurance Depreciation-Office equipment Administrative salaries Total Fixed Costs Income 70,860 70,860 42,040 43,280 1,240 Unfavorable 10,420 10,420 7,680 7,680 33,900 30,920 (2,980) Favorable 164,900 163,160 (1,920) Favorable $ 96,900 100,260 $ 3,360 Favorable