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Nina Company prepared the following fixed budget for July using 7,640 units for budgeted sales. Actual sales were 7,340 units and actual costs are shown below.   Fixed Budget For Month Ended July 31 Variable Amount per Unit Total Fixed Cost Fixed Budget (7,640 units) Actual Results (7,340 units) Sales $ 100   $ 764,000 $ 750,790 Variable costs         Direct materials 35   267,400 271,840 Direct labor 15   114,600 111,700 Indirect materials 4   30,560 28,760 Sales commissions 11   84,040 79,870 Total variable costs 65   496,600 492,170 Contribution margin $ 35   $ 267,400 $ 258,620 Fixed costs         Depreciation—Machinery   $ 69,530 69,530 69,530 Supervisor salary   41,270 41,270 42,440 Insurance   10,210 10,210 10,210 Depreciation—Office equipment   7,540 7,540 7,540 Administrative salaries   33,900 33,900 30,360 Total fixed costs   $ 162,450 162,450 160,080 Income     $ 104,950 $ 98,540 Prepare a flexible budget performance report for July at activity level of 7,340 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

Nina Company prepared the following fixed budget for July using 7,640 units for budgeted sales. Actual sales were 7,340 units and actual costs are shown below.   Fixed Budget For Month Ended July 31 Variable Amount per Unit Total Fixed Cost Fixed Budget (7,640 units) Actual Results (7,340 units) Sales $ 100   $ 764,000 $ 750,790 Variable costs         Direct materials 35   267,400 271,840 Direct labor 15   114,600 111,700 Indirect materials 4   30,560 28,760 Sales commissions 11   84,040 79,870 Total variable costs 65   496,600 492,170 Contribution margin $ 35   $ 267,400 $ 258,620 Fixed costs         Depreciation—Machinery   $ 69,530 69,530 69,530 Supervisor salary   41,270 41,270 42,440 Insurance   10,210 10,210 10,210 Depreciation—Office equipment   7,540 7,540 7,540 Administrative salaries   33,900 33,900 30,360 Total fixed costs   $ 162,450 162,450 160,080 Income     $ 104,950 $ 98,540 Prepare a flexible budget performance report for July at activity level of 7,340 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 13E: Flexible overhead budget Leno Manufacturing Company prepared the following factory overhead cost...
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Exercise 21-5 (Algo) Preparing flexible budget performance report LO P1

Nina Company prepared the following fixed budget for July using 7,640 units for budgeted sales. Actual sales were 7,340 units and actual costs are shown below.
 

Fixed Budget
For Month Ended July 31 Variable Amount per Unit Total Fixed Cost Fixed Budget (7,640 units) Actual Results (7,340 units)
Sales $ 100   $ 764,000 $ 750,790
Variable costs        
Direct materials 35   267,400 271,840
Direct labor 15   114,600 111,700
Indirect materials 4   30,560 28,760
Sales commissions 11   84,040 79,870
Total variable costs 65   496,600 492,170
Contribution margin $ 35   $ 267,400 $ 258,620
Fixed costs        
Depreciation—Machinery   $ 69,530 69,530 69,530
Supervisor salary   41,270 41,270 42,440
Insurance   10,210 10,210 10,210
Depreciation—Office equipment   7,540 7,540 7,540
Administrative salaries   33,900 33,900 30,360
Total fixed costs   $ 162,450 162,450 160,080
Income     $ 104,950 $ 98,540


Prepare a flexible budget performance report for July at activity level of 7,340 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

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