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 Fixed Budget For Month Ended July 31 Variable Amount per Unit Total Fixed Cost Fixed Budget (7,780 units) Actual Results (7,480 units) Sales $ 100 $ 778,000 $ 764,580 Variable costs Direct materials 35 272,300 276,880 Direct labor 15 116,700 113,800 Indirect materials 4 31,120 29,320 Sales commissions 11 85,580 81,340 Total variable costs 65 505,700 501,340 Contribution margin $ 35 $ 272,300 $ 263,240 Fixed costs DepreciationMachinery $ 70,860 70,860 70,860 Supervisor salary 42,040 42,040 43,280 Insurance 10,420 10,420 10,420 DepreciationOffice equipment 7,680 7,680 7,680 Administrative salaries 33,900 33,900 30,920 Total fixed costs $ 164,900 164,900 163,160 Income $ 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 24, 2024

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

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.

Fixed Budget
For Month Ended July 31	Variable Amount per Unit	Total Fixed Cost	Fixed Budget (7,780 units)	Actual Results (7,480 units)
Sales	$ 100		$ 778,000	$ 764,580
Variable costs
Direct materials	35		272,300	276,880
Direct labor	15		116,700	113,800
Indirect materials	4		31,120	29,320
Sales commissions	11		85,580	81,340
Total variable costs	65		505,700	501,340
Contribution margin	$ 35		$ 272,300	$ 263,240
Fixed costs
DepreciationMachinery		$ 70,860	70,860	70,860
Supervisor salary		42,040	42,040	43,280
Insurance		10,420	10,420	10,420
DepreciationOffice equipment		7,680	7,680	7,680
Administrative salaries		33,900	33,900	30,920
Total fixed costs		$ 164,900	164,900	163,160
Income			$ 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.)