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).