Question

Chocolate 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 Chocolate

Muffins for this year​ (all figures are annual totals unless otherwise​ noted):

​(Click the icon to view the budget​ information.)

During the​ year, Chocolate Muffins actually sold 7,900 ​cases, resulting in total sales revenue of $213,400.

Actual expenses​ (in total) from this year are as​ follows:

Chocolate 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 Chocolate Muffins for this year (all figures are annual totals unless otherwise noted): (Click the icon to view the budget information.) During the year, Chocolate Muffins actually sold 7,900 cases, resulting in total sales revenue of $213,400. Actual expenses (in total) from this year are as follows: (Click the icon to view the actual expenses.) Requirement Construct a flexible budget performance report for Chocolate Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U). (Enter the variances as positive numbers. Label each variance as favorable (F) or unfavorable (U). If the variance is 0, make sure to enter in a "O". A variance of zero is considered favorable.) Flexible viaster * Data Table Data Table Sales revenu Budgeted sales in cases ........ Packaging cost per case ........ 7,400 cases $ 5 A Packaging cost. .... Shipping expense A Shipping expense per case ...... so. 1 ($26 per ca Variable oper Packaging Shipping Sales con Fixed operati Sales commission expense ......... A Sales commission expense...... A Salaries expense.............. Salaries expense ............ Office rent... 40,400 10,800 4,268 8,000 3,100 3,300 1,100 1,600 A A 2% of sales price $ 6,600 $ 3,100 $ 3,300 $ 1,600 $ 1,400 Depreciation.................. A Office rent. Depreciation.......... Insurance expense .......... Office supplies expense ...... Colories A Choose from to tH Insurance expense. .. Office supplies expense........... A

Answer 1

			Actual	Flexible budget		Flexible	Volume variance		Master
			7,900	variance		budget			Budget
			cases			7900			7,400
						cases			cases
Sales revenue
($26 per case)			213,400	8,000	F	205400	13,000	F	192400
Variable operating expense
Packaging expense ($5per case)			40,400	900	U	39500	2,500	U	37000
Shipping Expense ($1per case)			10,800	2,900	U	7900	500	U	7400
Sales commissions(2%of sales)			4,268	160	U	4108	260	U	3848
Fixed operating expense
Salaries			8,000	1,400	U	6,600	0	N	6,600
Office rent			3,100	0	N	3,100	0	N	3,100
Depreciation			3,300	0	N	3,300	0	N	3,300
Insurance expense			1,100	500	F	1,600	0	N	1,600
Office supplies expense			1,600	200	U	1,400	0	N	1,400
Total operating expense			72,568	5,060	U	67508	3,260	U	64248