At the start of 2015, the New Orleans Fine Food Company budgeted before-tax income as follows:

Actual before tax income for 2015 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 $94,950 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 needing attention.

Transcribed Image Text:

Sales Less: $550,000 Material cost Labor cost Owner's salary Rent Depreciation Utilities $100,000 220,000 65,000 55,000 45,000 Income before taxes 43 $660,000 Sales Less: Material cost Labor cost Owner's salary Rent Depreciation Utilities $130,000 285,000 65,750 55,000 45,200 601,950 58,050 Income before taxes