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Nina Company prepared the following fixed budget for July using 7,520 units for budgeted sales. Actual sales were 7,220 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 Fixed Budget Variable Amount per Unit $ 100 35 186135 $ 35 Total Fixed Cost $ 68,390 Fixed Budget (7,520 units) $ 752,000 263,200 112,800 30,080 82,720 488,800 $ 263,200 68,390 Actual Results (7,220 units) $ 738,970 267,520 109,900 28,280 78,610 484,310 $ 254,660 68,398

Nina Company prepared the following fixed budget for July using 7,520 units for budgeted sales. Actual sales were 7,220 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 Fixed Budget Variable Amount per Unit $ 100 35 186135 $ 35 Total Fixed Cost $ 68,390 Fixed Budget (7,520 units) $ 752,000 263,200 112,800 30,080 82,720 488,800 $ 263,200 68,390 Actual Results (7,220 units) $ 738,970 267,520 109,900 28,280 78,610 484,310 $ 254,660 68,398

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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Exercise 21-5 (Algo) Preparing flexible budget performance report LO P1 Nina Company prepared the following fixed budget for July using 7,520 units for budgeted sales. Actual sales were 7,220 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 Depreciation Office equipment Administrative salaries Total Fixed Costs Fixed Budget Variable Amount per Unit $ 100 Income 35 15 4 11 65 $ 35 Total Fixed Cost $ 68,390 40,610 10,030 7,420 33,900 $ 160,350 Prepare a flexible budget performance report for July at activity level of 7,220 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Fixed Budget (7,520 units) $ 752,000 0 0 30,080 82,720 488,800 $ 263,200 NINA COMPANY Flexible Budget Performance Report Flexible Actual Budget Results (7,220 units) (7,220 units) 263,200 112,800 68,390 40,610 10,030 7,420 33,900 160,350 $ 102,850 0 Actual Results (7,220 units) $ 738,970 Variances 267,520 109,900 28,280 78,610 484,310 $ 254,660 68,390 41,720 10,030 7,420 29,880 157,440 $ 97,220 Favorable/Unfavorable
Transcribed Image Text:Exercise 21-5 (Algo) Preparing flexible budget performance report LO P1 Nina Company prepared the following fixed budget for July using 7,520 units for budgeted sales. Actual sales were 7,220 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 Depreciation Office equipment Administrative salaries Total Fixed Costs Fixed Budget Variable Amount per Unit $ 100 Income 35 15 4 11 65 $ 35 Total Fixed Cost $ 68,390 40,610 10,030 7,420 33,900 $ 160,350 Prepare a flexible budget performance report for July at activity level of 7,220 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Fixed Budget (7,520 units) $ 752,000 0 0 30,080 82,720 488,800 $ 263,200 NINA COMPANY Flexible Budget Performance Report Flexible Actual Budget Results (7,220 units) (7,220 units) 263,200 112,800 68,390 40,610 10,030 7,420 33,900 160,350 $ 102,850 0 Actual Results (7,220 units) $ 738,970 Variances 267,520 109,900 28,280 78,610 484,310 $ 254,660 68,390 41,720 10,030 7,420 29,880 157,440 $ 97,220 Favorable/Unfavorable
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