Question

E10-39B (similar to) Question Help Requirement Construct a flexible budget performance report for Divine 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.) Divine Muffins sells its muffins to restaurants and coffee houses for an average selling price of $31 per case. The following information relates to the budget for Divine Muffins for this year (all figures are annual totals unless otherwise noted): (Click the icon to view the budget information.) During the year, Divine Muffins actually sold 8,100 cases, resulting in total sales revenue of $259,300. Actual expenses (in total) from this year are as follows: (Click the icon to view the actual expenses.) i Data Table E Divine Muffins Flexible Budget Performance Report - Sales and Operating Expenses A For the Year Ended December 31 A 9,400 26,200 12,965 8,400 3,600 2,400 Flexible Master A Packaging.cost.......... Shipping expense........... Sales commission expense. Salaries expense ......... Office rent.......... Depreciation............ ............$ Insurance expense.......... Office supplies expense.... ...... $ Flexible Budget Actual Budget A Volume Variance Data Table 8,100 cases Variance 8,100 cases 7,900 Sales revenue .... A 900 ($31 per case) 259300 G E SIC 1,100 Print Done 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..... 7,900 cases $ 1 $ 3 5% of sales price $ 7,000 $ 3,600 $ 2,400 $ 1,700 $ 700 Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts Clear Check Answer remaining

Answer 1

Divine Muffins
Flexible budget performance report - Sales and operating expense
For year ended for December, 31
		Actual Results	Flexible Budget Variance		Flexible Budget	Volume Variance		Master Budget
Cases	Z	8100			8100			7900
Sales Revenue	$31 * Z	$     2,59,300	$        8,200	F	$   2,51,100	$   6,200	F	$ 2,44,900
Variable operating expense:
Packaging expense	$1 * Z	$           9,400	$        1,300	U	$         8,100	$       200	U	$       7,900
Shipping expense	$3 * Z	$         26,200	$        1,900	U	$       24,300	$       600	U	$    23,700
Sales Commissions	5% *Sales revenue	$         12,965	$           410	U	$       12,555	$       310	U	$    12,245
Fixed operating expense:
Salaries		$           8,400	$        1,400	U	$         7,000	$          -	None	$       7,000
Office rent		$           3,600	$               -	None	$         3,600	$          -	None	$       3,600
Depreciation		$           2,400	$               -	None	$         2,400	$          -	None	$       2,400
Insurance expense		$               900	$           800	F	$         1,700	$          -	None	$       1,700
Office supplies expense		$           1,100	$           400	U	$             700	$          -	None	$          700
Total operating expense		$         64,965	$        4,610	U	$       60,355	$   1,110	U	$    59,245