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amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Prepare a flexible budget performance report for July at activity level of 7,400 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Prepare a flexible budget performance report for July at activity level of 7,400 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nina Company prepared the following fixed budget for July using 7,700 units for budgeted sales. Actual sales were 7,400 units and actual costs are shown below. 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 Income 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 Supervisory salary Insurance Fixed Budget Variable Amount per Total Fixed Unit Cost $ 100 Depreciation Office equipment Administrative salaries Total Fixed Costs 35 15 Income -||=| 11 65 $35 $ 70,100 41,600 10,300 7,600 33,900 $ 163,500 Prepare a flexible budget performance report for July at activity level of 7,400 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Prepare a flexible budget performance report for July at activity level of 7,400 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Fixed Budget (7,700 units) $ 770,000 269,500 115,500 30,800 84,700 500, 500 $ 269,500 0 70, 100 41,600 10,300 7,600 33,900 163,500 $ 106,000 0 NINA COMPANY Flexible Budget Performance Report Flexible Budget (7,400 units) (7,400 units) Actual Results (7,400 units) $ 756,700 Actual Results 0 274,000 112,600 29,000 80,500 496,100 $ 260,600 Variances 70, 100 42,800 10,300 7,600 30, 600 161,400 $ 99,200 Favorable/Unfavorable
Transcribed Image Text:Nina Company prepared the following fixed budget for July using 7,700 units for budgeted sales. Actual sales were 7,400 units and actual costs are shown below. 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 Income 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 Supervisory salary Insurance Fixed Budget Variable Amount per Total Fixed Unit Cost $ 100 Depreciation Office equipment Administrative salaries Total Fixed Costs 35 15 Income -||=| 11 65 $35 $ 70,100 41,600 10,300 7,600 33,900 $ 163,500 Prepare a flexible budget performance report for July at activity level of 7,400 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Prepare a flexible budget performance report for July at activity level of 7,400 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Fixed Budget (7,700 units) $ 770,000 269,500 115,500 30,800 84,700 500, 500 $ 269,500 0 70, 100 41,600 10,300 7,600 33,900 163,500 $ 106,000 0 NINA COMPANY Flexible Budget Performance Report Flexible Budget (7,400 units) (7,400 units) Actual Results (7,400 units) $ 756,700 Actual Results 0 274,000 112,600 29,000 80,500 496,100 $ 260,600 Variances 70, 100 42,800 10,300 7,600 30, 600 161,400 $ 99,200 Favorable/Unfavorable
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