Exercise 21-5 (Algo) Preparing flexible budget performal Nina Company prepared the following fixed budget for July using 7,760 units for budgeted sales. Actual sales were 7,460 units 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 Fixed Budget Variable Amount per Unit $ 100 35 15 4 11 65 $ 35 Total Fixed Cost $ 70,670 41,930 10,390 7,660 33,900 $164,550 Fixed Budget (7,760 units) $ 776,000 271,600 116,400 31,040 85,360 504,400 $ 271,600 70,670 41,930 10,390 7,660 33,900 164,550 Actual Results (7,460 units) $ 762,610 276,160 113,500 29,240 81,130 500,030 $ 262,580 70,670 43,160 10,390 7,660 30,840 162.720
Exercise 21-5 (Algo) Preparing flexible budget performal Nina Company prepared the following fixed budget for July using 7,760 units for budgeted sales. Actual sales were 7,460 units 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 Fixed Budget Variable Amount per Unit $ 100 35 15 4 11 65 $ 35 Total Fixed Cost $ 70,670 41,930 10,390 7,660 33,900 $164,550 Fixed Budget (7,760 units) $ 776,000 271,600 116,400 31,040 85,360 504,400 $ 271,600 70,670 41,930 10,390 7,660 33,900 164,550 Actual Results (7,460 units) $ 762,610 276,160 113,500 29,240 81,130 500,030 $ 262,580 70,670 43,160 10,390 7,660 30,840 162.720
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...
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Question
![Exercise 21-5 (Algo) Preparing flexible budget performance report LO P1
Nina Company prepared the following fixed budget for July using 7,760 units for budgeted sales. Actual sales were 7,460 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 i
Total fixed costs
Income
Fixed Budget
Variable
Amount
per Unit
$ 100
35
55515
4
11
65
$ 35
Total Fixed
Cost
$ 70,670
41,930
10,390
7,660
33,900
$164,550
Fixed Budget
(7,760 units)
$ 776,000
271,600
116,400
31,040
85,360
504,400
$ 271,600
70,670
41,930
10,390
7,660
33,900
164,550
$ 107,050
Actual Results
(7,460 units)
$ 762,610
276,160
113,500
29,240
81,130
500,030
$ 262,580
70,670
43,160
10,390
7,660
30,840
162,720
$ 99,860
Prepare a flexible budget performance report for July at activity level of 7,460 units. Show variances between budgeted and actual
amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb46add54-cca4-4a90-b804-238d2f89a429%2F412b1ffe-df04-4460-8258-e6f13081f8bb%2F87g19vt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 21-5 (Algo) Preparing flexible budget performance report LO P1
Nina Company prepared the following fixed budget for July using 7,760 units for budgeted sales. Actual sales were 7,460 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 i
Total fixed costs
Income
Fixed Budget
Variable
Amount
per Unit
$ 100
35
55515
4
11
65
$ 35
Total Fixed
Cost
$ 70,670
41,930
10,390
7,660
33,900
$164,550
Fixed Budget
(7,760 units)
$ 776,000
271,600
116,400
31,040
85,360
504,400
$ 271,600
70,670
41,930
10,390
7,660
33,900
164,550
$ 107,050
Actual Results
(7,460 units)
$ 762,610
276,160
113,500
29,240
81,130
500,030
$ 262,580
70,670
43,160
10,390
7,660
30,840
162,720
$ 99,860
Prepare a flexible budget performance report for July at activity level of 7,460 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 7,460 units. Show variances between budgeted and actual
amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
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
Depreciation Office equipment
Administrative salaries
Total Fixed Costs
Income
NINA COMPANY
Flexible Budget Performance Report
Flexible
Budget
(7,460 units)
0
Actual
Results.
(7,460 units)
0
0
Variances
Favorable/Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb46add54-cca4-4a90-b804-238d2f89a429%2F412b1ffe-df04-4460-8258-e6f13081f8bb%2F3tgirqg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Prepare a flexible budget performance report for July at activity level of 7,460 units. Show variances between budgeted and actual
amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
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
Depreciation Office equipment
Administrative salaries
Total Fixed Costs
Income
NINA COMPANY
Flexible Budget Performance Report
Flexible
Budget
(7,460 units)
0
Actual
Results.
(7,460 units)
0
0
Variances
Favorable/Unfavorable
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