Divine Muffins sells its muffins to restaurants and coffee houses for an average selling price of $29 per case. The following information relates to the budget for Divine Muffins for this year (all figures are annual totals unless otherwise noted):

Budgeted sales in cases. . . . . . .	6,800 cases
Packaging cost per case. . . . . . .	$1
Shipping expense per case. . . . .	$5
Sales commission expense. . . .	2% of sales price
Salaries expense. . . . . . . . . . . . .	$7,000
Office rent. . . . . . . . . . . . . . . . . . .	$3,600
Depreciation. . . . . . . . . . . . . . . . .	$2,600
Insurance expense. . . . . . . . . . . .	$2,400
Office supplies expense. . . . . . .	$1,000

During the year, Divine Muffins actually sold 7,500 cases, resulting in total sales revenue of $225,100. Actual expenses (in total) from this year are as follows:

Packaging cost. . . . . . . . . . . . . . . .	$7,700
Shipping expense. . . . . . . . . . . . . .	$38,300
Sales commission expense. . . . . .	$4,502
Salaries expense. . . . . . . . . . . . . . .	$8,300
Office rent. . . . . . . . . . . . . . . . . . . .	$3,600
Depreciation. . . . . . . . . . . . . . . . . .	$2,600
Insurance expense. . . . . . . . . . . . .	$1,800
Office supplies expense. . . . . . . .	$1,400

Requirement

Construct a flexible budget performance report for Divine Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).