Question

Question Help E10-26A (similar to) Boston Muffins sells its muffins to restaurants and coffee houses for an average seling Requirement price of $35 per case. The following information relates to the budget for Boston Muffins Construct a flexible budget performance report for Boston Muffins for the year Be sure to for this year (all figures are annual totals unless otherwise noted): indicate whether each variance is favorable (F) or unfavorable (U). (Enter the variances Click the icon to view the budget information.) as positive numbers. Label each variance as favorable (F) or unfavorable (U). If the During the year. Boston Muttes actually sold 7.500 cases, resulting in total sales revenue variance is 0, make sure to enter in a "0". A variance of zero is considered favorable.) of $269,700. Actual expenses (in total) from this year are as follows: (Click the icon to view the actual expenses.) Boston Muffins Flexible Budget Performance Report - Sales and Operating Expenses For the Year Ended December 31 Flexible Flexible Actual Budget Budget Volume 7,500 cases Variance 7,500 cases Variance Master Budget 7.100 cases Sa revenue (535 per case) х Data Table Data Table - X 7,100 cases $ Budgeted sales in cases Packaging cost per case Shipping expense per case 38,000 10.300 5 $ $ 1 $ 10.788 Packaging cost Shipping expense Sales commission expense Salaries expense Oficerent Depreciation $ 3,200 45 of sales price 6.600 $ 3.600 $ 3.600 $ 2 600 Sales commission expense Salaries expense Oficerent Depreciation Insurance expense Once suppres expenses 5 2.600 $ 1.900 Insurance expense Ofice supplies expense S 2.100 $ 1,500 5 1.100 Print Done Print Done Choose from any list of enter any number in the input fields and then click Check Answer 3 parts remaining Clear All Check Answer

Answer 1

Flexible Budget Performance Report For The Year Ended December 31
	Actual 7,500 cases	Flexible budget variance		Flexible budget 7,500 cases	Volume variance		Master budget 7,100 cases
Sales revenue	$269,700	$7,200	F	$262,500 (7,500*$35)	$14,000	F	$248,500 (7,100*$35)
Variable expenses:
Packaging cost	38,000	500	U	37,500 (7,500*$5)	2,000	U	35,500 (7,100*$5)
Shipping expense	10,300	2,800	U	7,500 (7,500*$1)	400	U	7,100 (7,100*$1)
Sales commission expense	10,788	288	U	10,500 (262,500*4%)	560	U	9,940 (248,500*4%)
Fixed expenses:
Salaries expense	8,200	1,600	U	6,600	0		6,600
Office rent	3,600	0		3,600	0		3,600
Depreciation	2,600	0		2,600	0		2,600
Insurance expense	1,900	200	F	2,100	0		2,100
Office supplies expense	1,600	500	U	1,100	0		1,100
Total expenses	76,988	5,488	U	71,500	2,960	U	68,540
Net income	$192,712	$1,712	F	$191,000	$11,040	F	$179,960