At the start of 2021, the New Orleans Fine Food Company budgeted before-tax income as follows: 

Actual before tax income for 2021 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.

Transcribed Image Text:

Sales $550,000 Less: Material cost $100,000 Labor cost 220,000 Owner's salary 65,000 Rent 55,000 Depreciation 45,000 Utilities 22,000 507,000 Income before taxes $ 43,000