Nina Company prepared the following fixed budget for July using 7,740 units for budgeted sales. Actual sales were 7,440 units and actual costs are shown below.

Fixed Budget
For Month Ended July 31	Variable Amount per Unit	Total Fixed Cost	Fixed Budget (7,740 units)	Actual Results (7,440 units)
Sales	$ 100		$ 774,000	$ 760,640
Variable costs
Direct materials	35		270,900	275,440
Direct labor	15		116,100	113,200
Indirect materials	4		30,960	29,160
Sales commissions	11		85,140	80,920
Total variable costs	65		503,100	498,720
Contribution margin	$ 35		$ 270,900	$ 261,920
Fixed costs
DepreciationMachinery		$ 70,480	70,480	70,480
Supervisor salary		41,820	41,820	43,040
Insurance		10,360	10,360	10,360
DepreciationOffice equipment		7,640	7,640	7,640
Administrative salaries		33,900	33,900	30,760
Total fixed costs		$ 164,200	164,200	162,280
Income			$ 106,700	$ 99,640

Prepare a flexible budget performance report for July at activity level of 7,440 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)