Muffins sells its muffins to restaurants and coffee houses for an average selling price of $27 per case. The following information relates to the budget for Echo Canyon Muffins for this year (all figures are annual totals unless otherwise noted):
During the year, Echo Canyon Muffins actually sold 8,100 cases resulting in total sales revenue of $226,200.
Actual expenses (in total) from this year are as follows:
| Budgeted sales in cases. . . . . . . . | 7,900 cases |
| Packaging cost per case. . . . . . . . | $1 |
| Shipping expense per case. . . . . . | $3 |
| Sales commission expense. . . . . . | 4% of sales price |
| Salaries expense. . . . . . . . . . . . . . | $6,600 |
| Office rent. . . . . . . . . . . . . . . . . . . . | $3,200 |
| Depreciation. . . . . . . . . . . . . . . . . . | $2,800 |
| Insurance expense. . . . . . . . . . . . . | $1,800 |
| Office supplies expense. . . . . . . . . | $800 |
| Packaging cost. . . . . . . . . . . . . . . . . . . | $8,600 |
| Shipping expense. . . . . . . . . . . . . . . . . | $25,100 |
| Sales commission expense. . . . . . . . . | $9,048 |
| Salaries expense. . . . . . . . . . . . . . . . . | $7,000 |
| Office rent. . . . . . . . . . . . . . . . . . . . . . . | $3,200 |
| Depreciation. . . . . . . . . . . . . . . . . . . . . | $2,800 |
| Insurance expense. . . . . . . . . . . . . . . . | $1,500 |
| Office supplies expense. . . . . . . . . . . . | $1,400 |
Requirement
Construct a flexible budget performance report for Echo Canyon Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).
Darshita Changed status to publish August 30, 2020
