Nina Co. prepared the following fixed budget for July using 7,500 units for budgeted sales. Actual sales were 7,200 units and actual costs are shown below. Prepare a flexible budget performance report for July that shows variances between budgeted and actual amounts. Indicate whether each variance is favorable or unfavorable.

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Fixed Budget Variable Amount Total Fixed Budget Actual Results For Month Ended July 31 per Unit Fixed Cost (7,500 units) (7,200 units) Sales..... $100 $750,000 $737,000 Variable costs Direct materials.. Direct labor ... Indirect materials...... 35 262,500 266,800 15 112,500 109,600 4 30,000 28,200 Sales commissions 11 82,500 78,400 Total variable costs. 65 487,500 $262,500 483,000 Contribution margin... $ 35 $254,000 Fixed costs Depreciation-Machinery $ 68,200 68,200 68,200 ... . Supervisory salaries. 40,500 40,500 41,600 Insurance.... 10,000 10,000 10,000 Depreciation-Office equipment ... Administrative salaries .... 7,400 7,400 7,400 33,900 33,900 29,800 Total fixed costs.. $160,000 160,000 157,000 Income ... $102,500 $ 97,000