# 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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