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Nina Company prepared the following fixed budget for July using 7,620 units for budgeted sales. Actual sales were 7,320 units and actual costs are shown

Nina Company prepared the following fixed budget for July using 7,620 units for budgeted sales. Actual sales were 7,320 units and actual costs are shown below.

Fixed Budget
For Month Ended July 31 Variable Amount per Unit Total Fixed Cost Fixed Budget (7,620 units) Actual Results (7,320 units)
Sales $ 100 $ 762,000 $ 748,820
Variable costs
Direct materials 35 266,700 271,120
Direct labor 15 114,300 111,400
Indirect materials 4 30,480 28,680
Sales commissions 11 83,820 79,660
Total variable costs 65 495,300 490,860
Contribution margin $ 35 $ 266,700 $ 257,960
Fixed costs
DepreciationMachinery $ 69,340 69,340 69,340
Supervisor salary 41,160 41,160 42,320
Insurance 10,180 10,180 10,180
DepreciationOffice equipment 7,520 7,520 7,520
Administrative salaries 33,900 33,900 30,280
Total fixed costs $ 162,100 162,100 159,640
Income $ 104,600 $ 98,320

Prepare a flexible budget performance report for July at activity level of 7,320 units. Show variances between budgeted and actual amounts.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.

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