Nina Company prepared the following fixed budget for July using 7,500 units for budgeted sales. Actual sales were 7,200 units and actual costs are shown below. Fixed Budget For Month Ended July 31 Variable Amount per Unit Total Fixed Cost Fixed Budget (7,500 units) Actual Results (7,200 units) Sales $ 100 $ 750,000 $ 737,000 Variable costs Direct materials 35 262,500 266,800 Direct labor 15 112,500 109,600 Indirect materials 4 30,000 28,200 Sales commissions 11 82,500 78,400 Total variable costs 65 487,500 483,000 Contribution margin $ 35 $ 262,500 $ 254,000 Fixed costs DepreciationMachinery $ 68,200 68,200 68,200 Supervisor salary 40,500 40,500 41,600 Insurance 10,000 10,000 10,000 DepreciationOffice equipment 7,400 7,400 7,400 Administrative salaries 33,900 33,900 29,800 Total fixed costs $ 160,000 160,000 157,000 Income $ 102,500 $ 97,000 Prepare a flexible budget performance report for July at activity level of 7,200 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)