Question

Boston Muffins sells its muffins to restaurants and coffee houses for an average selling price of $32 per case. The following information relates to the budget for Boston Muffins for this year (all figures are annual totals unless otherwise noted): E (Click the icon to view the budget information.) During the year, Boston Muffins actually sold 7,900 cases, resulting in total sales revenue of $260,300. 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 Boston 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 "0". A variance of zero is considered favorable.) * Data Table - X Data Table - X A A A A Budgeted sales in cases......... Packaging cost.per.case ........ Shipping expense per case...... Sales commission expense...... Salaries expense........ Office rent .......... Depreciation.... Insurance expense. Office supplies expense........ 7,800 cases $ 4 $ 1 2% of sales price $ 6,800 $ 3,700 $ 2,400 $ 1,500 $ 500 Packaging.cost......... .........$ Shipping expense................ Sales, commission expense...... Salaries, expense..... Office rent.. Depreciation. Insurance expense............ Office supplies expense. A 32,500 8,700 5,206 8,100 3,700 2,400 1,100 700 A EA

Answer 1

solution: Flexible budget performance Report Actual Flexible budget variance Flexible budget* bra-c 7500 F 252,800 volume variance Master Budget* d=e-c 3200F 249,600 260,300 32,500 8,700 5,206 900 U 800 U 150 U 31,600 7,900 5,056 400 U 100 U 64U | 31,200 7,800 4,992 sales revenue variable operating expense: Packing expense shipping expense sales commssion fixed operating expense salaries office rent depreciation Insurance office supplies expense Total operating expense 8,100 6,800 3,700 2,400 1,100 1300 U 0 None 0 None 400 F 200U 2,950 U 6,800 0 None 3,700 0 None 2,400 0 None 1,5000 None 5000 None 59,456 564U 3,700 2,400 1,500 500 58,892 700 62,406 Flexible budget Master Budget 7900*32 7900*32 *working sales revenue variable operating expense: Packing expense shipping expense sales commssion 7900*4 7900*1 252800*0.02 7900*4 7900*1 249600*0.02