Chocolate 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 Chocolate
Muffins for this year (all figures are annual totals unless otherwise noted):
(Click the icon to view the budget information.)
During the year, Chocolate Muffins actually sold 7,900 cases, resulting in total sales revenue of $213,400.
Actual expenses (in total) from this year are as follows:
Chocolate 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 Chocolate Muffins for this year (all figures are annual totals unless otherwise noted): (Click the icon to view the budget information.) During the year, Chocolate Muffins actually sold 7,900 cases, resulting in total sales revenue of $213,400. 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 Chocolate 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 "O". A variance of zero is considered favorable.) Flexible viaster * Data Table Data Table Sales revenu Budgeted sales in cases ........ Packaging cost per case ........ 7,400 cases $ 5 A Packaging cost. .... Shipping expense A Shipping expense per case ...... so. 1 ($26 per ca Variable oper Packaging Shipping Sales con Fixed operati Sales commission expense ......... A Sales commission expense...... A Salaries expense.............. Salaries expense ............ Office rent... 40,400 10,800 4,268 8,000 3,100 3,300 1,100 1,600 A A 2% of sales price $ 6,600 $ 3,100 $ 3,300 $ 1,600 $ 1,400 Depreciation.................. A Office rent. Depreciation.......... Insurance expense .......... Office supplies expense ...... Colories A Choose from to tH Insurance expense. .. Office supplies expense........... A For the Year Ended December 31 Flexible Flexible onthlen Master Volume Actual 7,900 cases Budget Budget Variance Budget 7,900 cases volume 1 Variance 7,400 cases Sales revenue ($26 per case) Variable operating expenses: Packaging expense ($5 per case sold) D Shipping expense ($1 per case sold) I C C IO Sales commissions (2% of sales price) Fixed operating expenses: Salaries ($26 per case) Variable operating expenses: Packaging expense ($5 per case sold) Shipping expense ($1 per case sold) Sales commissions (2% of sales price) Fixed operating expenses: Salaries Office rent Depreciation Insurance expense Office Supplies expense Total operating expenses
