Exercise 21-5 (Algo) Preparing flexible budget performance report LO P1 Nina Company prepared the following fixed budget for July using 7,800 units for budgeted sales. Actual sales were 7,500 units and actual costs are shown below. Fixed Budget Variable Amount per Total Fixed Unit Cost $ 100 Fixed Budget (7,800 units) $ 780,000 Actual Results (7,500 units) $ 766,550 For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total variable costs Contribution margin Fixed costs Depreciation-Machinery Supervisor salary Insurance Depreciation-office equipment Administrative salaries Total fixed costs 35 15 4 11 65 $ 35 273,000 117,000 31,200 85,800 507,000 $ 273,000 277,600 114,100 29,400 81,550 502,650 $ 263,900 $ 71,050 42,150 10,450 7,700 33,900 $ 165,250 71,050 42,150 10,450 7,700 33,900 165,250 $ 107,750 71,050 43,400 10,450 7,700 31,000 163,600 $ 100,300 Income Prepare a flexible budget performance report for July at activity level of 7,500 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) NINA COMPANY Flexible Budget Performance Report Flexible Actual Budget Results (7,500 units) (7,500 units) For Month Ended July 31 Variances Favorable/Unfavorable Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total Variable Costs Contribution margin Fixed costs Depreciation-Machinery Supervisory salary Insurance Depreciation Office equipment Administrative salaries Total Fixed Costs Income