Hampton 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 Hampton Muffins for this year (all figures are annual totals unless otherwise noted):

Data Table:

Budgeted sales in cases. . . . . . . .	9,200 cases
Packaging cost per case. . . . . . . .		$2
Shipping expense per case. . . . . .		$3
Sales commission expense. . . . . .	4% of sales price
Salaries expense. . . . . . . . . . . . . .		$7,000
Office rent. . . . . . . . . . . . . . . . . . . .		$3,800
Depreciation. . . . . . . . . . . . . . . . . .		$2,400
Insurance expense. . . . . . . . . . . .		$1,700
Office supplies expense. . . . . . . .		$500

During the year, Hampton Muffins actually sold 9,900 cases, resulting in total sales revenue of $264,700. Actual expenses (in total) from this year are as follows:

Data Table:

Packaging cost. . . . . . . . . . . . . . . . . . .	$20,100
Shipping expense. . . . . . . . . . . . . .	$32,500
Sales commission expense. . . . . . . . .	$10,588
Salaries expense. . . . . . . . . . . . . . . . .	$7,200
Office rent. . . . . . . . . . . . . . . . . . . . . . .	$3,800
Depreciation. . . . . . . . . . . . . . . . . . . . .	$2,400
Insurance expense. . . . . . . . . . . . . . . .	$1,400
Office supplies expense. . . . . . . . . . . .	$600

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	Budget		Budget	Volume		Budget
	9,900 cases	Variance		9,900 cases	Variance		9,200 cases
Sales revenue
($26 per case)	$264,700	$7,300	F	$257,400	$18,200	F	$239,200

Variable operating expenses:
Packaging expense ($2 per case sold)			U			U
Shipping expense ($3 per case sold)			U			U
Sales commissions (4% of sales price)			U			U

Fixed operating expenses: Salaries Office rent Depreciation Insurance expense Office Supplies expense Total operating expenses