During the year, Stone Canyon Muffins actually sold 9,500 cases, resulting in total sales revenue of $264,100. Actual expenses (in total) from this year are as follows: Packaging cost ................................................................ $39,300 Shipping expense ............................................................ $21,800 Sales commission expense .............................................. $2,641 Salaries expense .............................................................. $8,500 Office rent ....................................................................... $3,800 Depreciation .................................................................... $2,600 Insurance expense ........................................................... $2,300 Office supplies expense .................................................. $1,300 Requirement Construct a flexible budget performance report for Stone Canyon Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).

E10-39B Prepare a flexible budget performance report (Learning Objective 5) Stone Canyon Muffins sells its muffins to restaurants and coffee houses for an average selling price of $27 per case. The following information relates to the budget for Stone Canyon Muffins for this year fall figures are annual totals unless otherwise noted): Budgeted sales in cases .. will 9,300 cases Packaging cost per case...I... $ 4.00 Shipping expense per case .......w. $ 2.00 Sales commission expense. 1% of sales price Salaries expense. $7,000 Office rent.. $3,800 Depreciation $2,600 Insurance expense $2,500 Office supplies expense $ 600