Question

Dream 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 Dream Muffins for this year (all figures are annual totals unless otherwise noted): B (Click the icon to view the budget information.) During the year, Dream Muffins actually sold 8,600 cases, resulting in total sales revenue of $231,900. Actual expenses (in total) from this year are as follows: E: (Click the icon to view the actual expenses.)

Answer 1

	Actual 8600 cases	Flexible Budget Variance		Flexible Budget 8600 cases	Volume Variance		Master Budget 8500 cases
Sales Revenue	$     231,900	$       8,300	F	$      223,600	$     10,900	F	$      221,000
Variable Operating Expenses
Packaging Expenses	$          9,300	$          700	U	$           8,600	$           800	U	$           8,500
Shipping Expenses	$        36,800	$       2,400	U	$         34,400	$        2,800	U	$        34,000
Sales Commission	$          6,957	$          249	U	$           6,708	$           327	U	$           6,630
Fixed Operating Expenses
Salaries	$          7,700	$          800	U	$           6,900	$           800	U	$           6,900
Office Rent	$          3,100	$              -		$           3,100	$               -		$           3,100
Depreciation	$          2,600	$              -		$           2,600	$               -		$           2,600
Insurance Expense	$          2,000	$          500	F	$           2,500	$           500	F	$           2,500
Office Supplies expense	$          1,200	$       1,200	U	$                  -	$        1,200	U	$                  -
Total Operating Expenses	$        69,657	$       4,849	U	$         64,808	$        5,427	U	$        64,230