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.