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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 Variable Amount Total Fixed Total variable costs Fixed costs For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Contribution margin Depreciation-Machinery Supervisor salary Insurance Depreciation-Office equipment Administrative salaries Total fixed costs per Unit Cost Fixed Budget (7,640 units) Actual Results (7,340 units) $ 100 $ 764,000 35 15 554 11 65 $ 35 267,400 114,600 30,560 84,040 496,600 $ 267,400 $ 750,790 271,840 111,700 28,760 79,870 492,170 $ 258,620 $ 69,530 69,530 69,530 41,270 41,270 42,440 10,210 10,210 10,210 7,540 7,540 7,540 33,900 33,900 30,360 $ 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. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. NINA COMPANY For Month Ended July 31 Sales Variable costs Direct materials Flexible Budget Performance Report Flexible Budget (7,340 units) Actual Results (7,340 units) Variances Favorable or Unfavorable $ 734,000 $ 734,000 256,900 Direct labor 110,100 Indirect materials 29,360 Sales commissions 80,740 Total Variable Costs 477,100 0 Contribution margin 249,560 Fixed costs Depreciation-Machinery Supervisory salary Insurance Depreciation Office equipment Administrative salaries Total Fixed Costs Income 0 0

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 Variable Amount Total Fixed Total variable costs Fixed costs For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Contribution margin Depreciation-Machinery Supervisor salary Insurance Depreciation-Office equipment Administrative salaries Total fixed costs per Unit Cost Fixed Budget (7,640 units) Actual Results (7,340 units) $ 100 $ 764,000 35 15 554 11 65 $ 35 267,400 114,600 30,560 84,040 496,600 $ 267,400 $ 750,790 271,840 111,700 28,760 79,870 492,170 $ 258,620 $ 69,530 69,530 69,530 41,270 41,270 42,440 10,210 10,210 10,210 7,540 7,540 7,540 33,900 33,900 30,360 $ 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. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. NINA COMPANY For Month Ended July 31 Sales Variable costs Direct materials Flexible Budget Performance Report Flexible Budget (7,340 units) Actual Results (7,340 units) Variances Favorable or Unfavorable $ 734,000 $ 734,000 256,900 Direct labor 110,100 Indirect materials 29,360 Sales commissions 80,740 Total Variable Costs 477,100 0 Contribution margin 249,560 Fixed costs Depreciation-Machinery Supervisory salary Insurance Depreciation Office equipment Administrative salaries Total Fixed Costs Income 0 0

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...
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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 Variable Amount Total Fixed Total variable costs Fixed costs For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Contribution margin Depreciation-Machinery Supervisor salary Insurance Depreciation-Office equipment Administrative salaries Total fixed costs per Unit Cost Fixed Budget (7,640 units) Actual Results (7,340 units) $ 100 $ 764,000 35 15 554 11 65 $ 35 267,400 114,600 30,560 84,040 496,600 $ 267,400 $ 750,790 271,840 111,700 28,760 79,870 492,170 $ 258,620 $ 69,530 69,530 69,530 41,270 41,270 42,440 10,210 10,210 10,210 7,540 7,540 7,540 33,900 33,900 30,360 $ 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. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. NINA COMPANY For Month Ended July 31 Sales Variable costs Direct materials Flexible Budget Performance Report Flexible Budget (7,340 units) Actual Results (7,340 units) Variances Favorable or Unfavorable $ 734,000 $ 734,000 256,900 Direct labor 110,100 Indirect materials 29,360 Sales commissions 80,740 Total Variable Costs 477,100 0 Contribution margin 249,560 Fixed costs Depreciation-Machinery Supervisory salary Insurance Depreciation Office equipment Administrative salaries Total Fixed Costs Income 0 0
Transcribed Image Text: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 Variable Amount Total Fixed Total variable costs Fixed costs For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Contribution margin Depreciation-Machinery Supervisor salary Insurance Depreciation-Office equipment Administrative salaries Total fixed costs per Unit Cost Fixed Budget (7,640 units) Actual Results (7,340 units) $ 100 $ 764,000 35 15 554 11 65 $ 35 267,400 114,600 30,560 84,040 496,600 $ 267,400 $ 750,790 271,840 111,700 28,760 79,870 492,170 $ 258,620 $ 69,530 69,530 69,530 41,270 41,270 42,440 10,210 10,210 10,210 7,540 7,540 7,540 33,900 33,900 30,360 $ 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. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. NINA COMPANY For Month Ended July 31 Sales Variable costs Direct materials Flexible Budget Performance Report Flexible Budget (7,340 units) Actual Results (7,340 units) Variances Favorable or Unfavorable $ 734,000 $ 734,000 256,900 Direct labor 110,100 Indirect materials 29,360 Sales commissions 80,740 Total Variable Costs 477,100 0 Contribution margin 249,560 Fixed costs Depreciation-Machinery Supervisory salary Insurance Depreciation Office equipment Administrative salaries Total Fixed Costs Income 0 0
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