EXERCISE 10-16. Performance Report [LO 2, 3]At the start of 2018, the New Orleans Fine Food Company budgeted before-tax income as follows:

Sales $550,000

Less:

Material cost $100,000

Labor cost 220,000

Owner's salary 65,000

Rent 55,000

Depreciation 45,000

Utilities 22,000 507,000

Income before taxes $ 43,000

Actual before tax income for 2018 was:

Sales $660,000

Less:

Material cost $130,000

Labor cost 285,000

Owner's salary 65,750

Rent 55,000

Depreciation 45,200

Utilities 21,00 601,950

Income before taxes $ 58,050

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? Make a performance report that will help her focus on areas needing attention.

*** Please be explain all the steps to get the answer.