Nina Company prepared the following fixed budget for July using 7,900 units for budgeted sales. Actual sales were 7,600 units and actual costs are shown below.

Fixed Budget
For Month Ended July 31	Variable Amount per Unit	Total Fixed Cost	Fixed Budget (7,900 units)	Actual Results (7,600 units)
Sales	$ 100		$ 790,000	$ 776,400
Variable costs
Direct materials	35		276,500	281,200
Direct labor	15		118,500	115,600
Indirect materials	4		31,600	29,800
Sales commissions	11		86,900	82,600
Total variable costs	65		513,500	509,200
Contribution margin	$ 35		$ 276,500	$ 267,200
Fixed costs
DepreciationMachinery		$ 72,000	72,000	72,000
Supervisor salary		42,700	42,700	44,000
Insurance		10,600	10,600	10,600
DepreciationOffice equipment		7,800	7,800	7,800
Administrative salaries		33,900	33,900	31,400
Total fixed costs		$ 167,000	167,000	165,800
Income			$ 109,500	$ 101,400

Prepare a flexible budget performance report for July at activity level of 7,600 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)