Organic

Muffins sells its muffins to restaurants and coffee houses for an average selling price of

$28

per case. The following information relates to the budget for

During the year,

Organic

Muffins actually sold

9,500

cases, resulting in total sales revenue of

$273,600.

Actual expenses (in total) from this year are as follows:

Organic

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

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During the year,

Organic

Muffins actually sold

9,500

cases, resulting in total sales revenue of

$273,600.

Actual expenses (in total) from this year are as follows:

Packaging cost. . . . . . . . . . . . . . . .	$9,800
Shipping expense. . . . . . . . . . . . . .	$50,400
Sales commission expense. . . . . .	$8,208
Salaries expense. . . . . . . . . . . . . . .	$6,900
Office rent. . . . . . . . . . . . . . . . . . . . . . . .	$3,400
Depreciation. . . . . . . . . . . . . . . . . . .	$3,100
Insurance expense. . . . . . . . . . . . .	$2,000
Office supplies expense. . . . . . . . .	$1,600

Budgeted sales in cases. . . . . . .

9,000 cases

Packaging cost per case. . . . . . .

$1

Shipping expense per case. . . . .

$5

Sales commission expense. . . .

3% of sales price

Salaries expense. . . . . . . . . . . . . .

$6,400

Office rent. . . . . . . . . . . . . . . . . . . . . . .

$3,400

Depreciation. . . . . . . . . . . . . . . . .

$3,100

Insurance expense. . . . . . . . . . . .

$2,400

Office supplies expense. . . . . . .

$1,000

Requirement Construct a flexible budget performance report for

Organic 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.)