Nina Company prepared the following fixed budget for July using 7,820 units for budgeted sales. Actual sales were 7,520 units and actual costs are shown below.

Fixed Budget
For Month Ended July 31	Variable Amount per Unit	Total Fixed Cost	Fixed Budget (7,820 units)	Actual Results (7,520 units)
Sales	$ 100		$ 782,000	$ 768,520
Variable costs
Direct materials	35		273,700	278,320
Direct labor	15		117,300	114,400
Indirect materials	4		31,280	29,480
Sales commissions	11		86,020	81,760
Total variable costs	65		508,300	503,960
Contribution margin	$ 35		$ 273,700	$ 264,560
Fixed costs
DepreciationMachinery		$ 71,240	71,240	71,240
Supervisor salary		42,260	42,260	43,520
Insurance		10,480	10,480	10,480
DepreciationOffice equipment		7,720	7,720	7,720
Administrative salaries		33,900	33,900	31,080
Total fixed costs		$ 165,600	165,600	164,040
Income			$ 108,100	$ 100,520

Prepare a flexible budget performance report for July at activity level of 7,520 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)