Nina Company prepared the following fixed budget for July using 7,580 units for budgeted sales. Actual sales were 7,280 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 Fixed Budget Variable Amount per Total Fixed Unit $ 100 35 15 4 11 65 $ 35 Cost Fixed Budget (7,580 units) $ 758,000 Actual Results (7,280 units) 265,300 113,700 30,320 83,380 492,700 $ 265,300 $ 744,880 269,680 110,800 28,520 79,240 488,240 $ 256,640 $ 68,960 68,960 68,960 40,940 40,940 42,080 10,120 10,120 10,120 7,480 7,480 7,480 33,900 33,900 30,120 $ 161,400 161,400 158,760 $ 103,900 $ 97,880 Prepare a flexible budget performance report for July at activity level of 7,280 units. Show variances between budgeted and actual amounts. Note: 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 (7,280 units) Actual Results (7,280 units) Variances Favorable or Unfavorable
Nina Company prepared the following fixed budget for July using 7,580 units for budgeted sales. Actual sales were 7,280 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 Fixed Budget Variable Amount per Total Fixed Unit $ 100 35 15 4 11 65 $ 35 Cost Fixed Budget (7,580 units) $ 758,000 Actual Results (7,280 units) 265,300 113,700 30,320 83,380 492,700 $ 265,300 $ 744,880 269,680 110,800 28,520 79,240 488,240 $ 256,640 $ 68,960 68,960 68,960 40,940 40,940 42,080 10,120 10,120 10,120 7,480 7,480 7,480 33,900 33,900 30,120 $ 161,400 161,400 158,760 $ 103,900 $ 97,880 Prepare a flexible budget performance report for July at activity level of 7,280 units. Show variances between budgeted and actual amounts. Note: 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 (7,280 units) Actual Results (7,280 units) Variances Favorable or Unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nina Company prepared the following fixed budget for July using 7,580 units for budgeted sales. Actual sales were 7,280 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
Fixed Budget
Variable
Amount per Total Fixed
Unit
$ 100
35
15
4
11
65
$ 35
Cost
Fixed Budget
(7,580 units)
$ 758,000
Actual Results
(7,280 units)
265,300
113,700
30,320
83,380
492,700
$ 265,300
$ 744,880
269,680
110,800
28,520
79,240
488,240
$ 256,640
$ 68,960
68,960
68,960
40,940
40,940
42,080
10,120
10,120
10,120
7,480
7,480
7,480
33,900
33,900
30,120
$ 161,400
161,400
158,760
$ 103,900
$ 97,880
Prepare a flexible budget performance report for July at activity level of 7,280 units. Show variances between budgeted and actual
amounts.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
Transcribed Image Text: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
(7,280 units)
Actual
Results
(7,280 units)
Variances
Favorable or Unfavorable
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