At the start of 2012, the New Orleans Fine Food Company budgeted before-tax income as follows:

Actual before tax income for 2012 was:

Required
Florence Roden, the owner of the company, is pleased that sales were much higher than planned, but she also is concerned that expenses were $85,000 higher than the amounts she budgeted. Should she be concerned with the level of actual expenses? Prepare a performance report that will help her focus on areas needingattention.

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Sales Less $550,000 Material cost Labor cost Owner's salary Rent Depreciation Utilities $110,000 220,000 65,000 55,000 45,000 22,000 517,000 33,000 Income before taxes Sales Less: $660,000 Material cost Labor cost Owner's salary Rent Depreciation Utilities $131,000 285,000 65,000 55,000 45,000 21,000 602,000 58,000 Income before taxes