Stone Canyon 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 Stone Canyon Muffins for this year (all figures are annual totals unless otherwise noted):
Budgeted sales in cases............................................. 9,300 cases
Packaging cost per case ................................................... $ 4.00
Shipping expense per case .............................................. $ 2.00
Sales commission expense............................... 1% of sales price
Salaries expense ............................................................... $7,000
Office rent ........................................................................ $3,800
Depreciation ..................................................................... $2,600
Insurance expense ............................................................ $2,500
Office supplies expense ................................................... $ 600
During the year, Stone Canyon Muffins actually sold 9,500 cases, resulting in total sales revenue of $264,100. Actual expenses (in total) from this year are as follows:
Packaging cost ................................................................ $ 39,300
Shipping expense ............................................................ $ 21,800
Sales commission expense .............................................. $ 2,641
Salaries expense .............................................................. $ 8,500
Office rent ....................................................................... $ 3,800
Depreciation .................................................................... $ 2,600
Insurance expense ........................................................... $ 2,300
Office supplies expense .................................................. $ 1,300
Requirement
Construct a flexible budget performance report for Stone Canyon Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).