9,200 cases 2 $ 5 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 $ 3% of sales price 6,000 $ $ 3,800 3,000 2,500 600 Packaging cost. $ 20,200 Shipping expense $ 49,800 Sales commission expense ..... $ 10,536 Salaries expense. $ 7,300 Office rent $ 3,800 Depreciation .... $ 3,000 Insurance expense $ 1,900 Office supplies expense $ 1,100 Hampton Muffins sells its muffins to restaurants and coffee houses for an average selling price of $35 per case. The following information relates to the budget for Hampton Muffins for this year (all figures are annual totals unless otherwise noted): (Click the icon to view the budget information.) During the year, Hampton Muffins actually sold 9,800 cases, resulting in total sales revenue of $351,200. Actual expenses (in total) from this year are as follows: (Click the icon to view the actual expenses.) Requirement Construct a flexible budget performance report for Hampton 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.) Hampton Muffins Flexible Budget Performance Report - Sales and Operating Expenses For the Year Ended December 31 Flexible Flexible Master Actual Volume Budget Variance Budget 9,800 cases Budget 9,200 cases 9,800 cases Variance Sales revenue ($35 per case) Variable operating expenses: Packaging expense ($2 per case sold) Shipping expense ($5 per case sold) Sales commissions (3% of sales price) Fixed operating expenses: Salaries Office rent Depreciation Insurance expense Office Supplies expense Total operating expenses