Nina Company prepared the following fixed budget for July using 7,680 units for budgeted sales. Actual sales were 7,380 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 Graded Assignment For Month Ended July 31 Sales Variable costs Direct materials Direct labor Indirect materials Sales commissions Total Variable Costs Fixed Budget Variable. Amount per Unit $ 100 Contribution margin Fixed costs Depreciation Machinery Supervisory salary Insurance Depreciation Office equipment Administrative salaries Total Fixed Costs 35 15 4 Income 11 65 $ 35 Total Fixed Cost $ 69,910 41,490 10,270 7,580 33,900 $ 163,150 Prepare a flexible budget performance report for July at activity level of 7,380 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Fixed Budget (7,680 units) $ 768,000 NINA COMPANY Flexible Budget Performance Report Flexible Actual Budget Results (7,380 units) (7,380 units) 0 499,200 $ 268,800 0 268,800. 115,2007 30,720 84,480 NINA COMPANY Flexible Budget Performance Report Flexible Budget (7,380 units) 10,270 7,580 33,900 163,150 $ 105,650 Prepare a flexible budget performance report for July at activity level of 7,380 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Results (7.380 units) 69,910 41,490 0 Variances Actual Results (7,380 units) $ 754,730 273,280 112,300 28,920 80,290 494,790 $ 259,940 Variances 69,910 42,680 10,270 7,580 30,520 160,960 $98,980 Favorable/Unfavorable Favorable/Unfavorable
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Nina Company prepared the following fixed budget for July using 7,680 units for budgeted sales. Actual sales were 7,380 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
Graded Assignment
For Month Ended July 31
Sales
Variable costs
Direct materials
Direct labor
Indirect materials
Sales commissions
Total Variable Costs
Fixed Budget
Contribution margin
Fixed costs
Depreciation Machinery
Supervisory salary
Insurance
Depreciation Office equipment
Administrative salaries
Total Fixed Costs
Variable.
Amount
per Unit
$ 100
Income
35
15
4
11
65
$ 35
Total Fixed
Cost
$ 69,910
41,490
10,270
7,580
33,900
$ 163,150
Prepare a flexible budget performance report for July at activity level of 7,380 units. Show variances between budgeted and actual
amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
Fixed Budget
(7,680 units)
$ 768,000
NINA COMPANY
Flexible Budget Performance Report
Flexible
Budget
(7,380 units) (7,380 units)
0
Actual
Results
0
30,720
84,480
499,200
$ 268,800
268,800
115,200)
NINA COMPANY
Flexible Budget Performance Report
Flexible
Budget
(7,380 units)
10,270
7,580
33,900
163,150
$ 105,650
Actual
Results
(7.380 units)
Prepare a flexible budget performance report for July at activity level of 7,380 units. Show variances between budgeted and actual
amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
69,910
41,490
0
Variances
Actual Results
(7,380 units)
$ 754,730
273,280
112,300
28,920
80,290
494,790
$ 259,940.
Variances
69,910
42,680
10,270
7,580
30,520
160,960
$98,980
Favorable/Unfavorable
Favorable/Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc746fc46-4193-4786-aefe-a0152ec44e08%2F2a5334c5-6277-4c8c-98d5-14ae19d12af3%2Fkn3ivb3_processed.jpeg&w=3840&q=75)
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