Question: Sweet Street Muffins sells its muffins to restaurants and coffee

Sweet Street Muffins sells its muffins to restaurants and coffee houses for an average selling price of $ 33 per case. The following information relates to the budget for Sweet Street Muffins for this year (all figures are annual totals unless otherwise noted):
Budgeted sales in cases................................. 7,900
cases Packaging cost per case................................. $ 3.00
Shipping expense per case............................ $ 1.00
Sales commission expense............................. 2% of sales price
Salaries expense............................................. $ 6,900
Office rent...................................................... $ 3,300
Depreciation................................................... $ 3,000
Insurance expense.......................................... $ 2,300
Office supplies expense................................. $ 1,100

During the year, Sweet Street Muffins actually sold 8,400 cases resulting in total sales ­revenue of $ 284,800. Actual expenses (in total) from this year are as follows:
Packaging cost....................................................... $ 26,100
Shipping expense................................................... $ 8,900
Sales commission expense..................................... $ 5,696
Salaries expense..................................................... $ 7,700
Office rent.............................................................. $ 3,300
Depreciation........................................................... $ 3,000
Insurance expense.................................................. $ 2,000
Office supplies expense......................................... $ 1,300

Requirement
Construct a flexible budget performance report for Sweet Street Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).


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  • CreatedAugust 27, 2014
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