At the start of 2018, the New Orleans Fine Food Company budgeted before-tax income as follows:

Actual before tax income for 2018 was:

Required
Florence Roden, the owner of the company, is pleased that sales were much higher than planned, but she also is concerned that expenses were $94,950 higher than the amounts she budgeted. Should she be concerned with the level of actual expenses? Prepare a performance report that will help her focus on areas needing attention.

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Sales $550,000 Less: Material cost $100,000 Labor cost 220,000 Owner's salary 65,000 Rent 55,000 Depreciation Utilities 45,000 22,000 507,000 $ 43,000 Income before taxes Sales $660,000 Less: Material cost $130,000 Labor cost 285,000 Owner's salary 65,750 Rent 55,000 Depreciation Utilities 45,200 21,000 601,950 Income before taxes $ 58,050