Nina Company prepared the following fixed budget for July using 7,740 units for budgeted sales. Actual sales were 7,440 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 Total Fixed per Unit Cost $ 100 Innama 35 15 =-=-6212 $ 35 $ 70,480 41,820 10,360 7,640 33,900 $ 164,200 Prepare a flexible budget performance report for July at activity level of 7,440 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Fixed Budget (7,740 units) $ 774,000 0 0 270,900 116, 100 30,960 85,140 503,100 $ 270,900 NINA COMPANY Flexible Budget Performance Report Flexible Budget (7,440 units) (7,440 units) Actual Results 70,480 41,820 10,360 7,640 33,900 164,200 $ 106,700 Actual Results (7,440 units) $760,640 Variances 275,440 113,200 29,160 80,920 498,720 $ 261,920 70,480 43,040 10,360 7,640 30,760 162,280 $ 99,640 Favorable/Unfavorable < Prev ********* 2 of 2 Next >
Nina Company prepared the following fixed budget for July using 7,740 units for budgeted sales. Actual sales were 7,440 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 Total Fixed per Unit Cost $ 100 Innama 35 15 =-=-6212 $ 35 $ 70,480 41,820 10,360 7,640 33,900 $ 164,200 Prepare a flexible budget performance report for July at activity level of 7,440 units. Show variances between budgeted and actual amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Fixed Budget (7,740 units) $ 774,000 0 0 270,900 116, 100 30,960 85,140 503,100 $ 270,900 NINA COMPANY Flexible Budget Performance Report Flexible Budget (7,440 units) (7,440 units) Actual Results 70,480 41,820 10,360 7,640 33,900 164,200 $ 106,700 Actual Results (7,440 units) $760,640 Variances 275,440 113,200 29,160 80,920 498,720 $ 261,920 70,480 43,040 10,360 7,640 30,760 162,280 $ 99,640 Favorable/Unfavorable < Prev ********* 2 of 2 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Transcribed Image Text:Nina Company prepared the following fixed budget for July using 7,740 units for budgeted sales. Actual sales were 7,440 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 Total Fixed
per Unit
Cost
$ 100
Innama
35
15
4
11
65
$ 35
$ 70,480
41,820
10,360
7,640
33,900
$164,200
Prepare a flexible budget performance report for July at activity level of 7,440 units. Show variances between budgeted and actual
amounts. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
Fixed Budget
(7,740 units)
$ 774,000
0
270,900
116, 100
30,960
85,140
503, 100
$ 270,900
0
70,480
41,820
10,360
7,640
33,900
164,200
$ 106,700
NINA COMPANY
Flexible Budget Performance Report
Flexible
Actual
Results
Budget
(7,440 units) (7,440 units)
0
Actual Results.
(7,440 units)
$ 760,640
Variances
275,440
113,200
29,160
80,920
498,720
$ 261,920
70,480
43,040
10,360
7,640
30,760
162,280
$ 99,640
Favorable/Unfavorable
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