Main Street Muffins sells its muffins to restaurants and coffee houses for an average selling price of $26 per case. The following information relates to the budget for Main Street Muffins for this year (all figures are annual totals unless otherwise noted):
Budgeted sales in cases 9,100 cases
Packaging cost per case $ 1
Shipping expense per case $ 2
Sales commission expense 5% of sales price
Salaries expense $6,500
Office rent $3,900
Depreciation $2,500
Insurance expense $1,800
Office supplies expense $ 900
During the year, Main Street Muffins actually sold 9,500 cases, resulting in total sales revenue
of $255,200. Actual expenses (in total) from this year are as follows:
Packaging cost $ 10,600
Shipping expense $ 19,500
Sales commission expense $ 12,760
Salaries expense $ 7,300
Office rent $ 3,900
Depreciation $ 2,500
Insurance expense $ 1,600
Office supplies expense $ 1,600
Requirement:Construct a flexible budget performance report for Main Street Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).