ScarfLady Inc. is a Waterloo-based boutique that specializes in designing, manufacturing and selling of unique fashionable scarves and scarf necklaces. These can be worn multiple ways for different looks as well as complimenting adorned neck pieces. The company uses flexible budget to control its administrative costs. Monthly sales are expected to range from $16,000 to $18,000.

Based on the currently available information, the variable and fixed administrative costs are as follow:

Variable Costs			Fixed costs
Order processing	0.8% of sales		Office rent	$4,350
Freight	3.2% of sales		Admin staff salary	$2,480
Consumables	1.6% of sales		Insurance	$420

The actual sales for January 2021 were $16,875, and the administrative expenses were order processing $128, freight $525, consumables $254, office rent $4,350, admin staff salary $2,535, and insurance $580.

Instructions

Prepare a flexible budget performance report for January 2021 by using the above information. (9 marks)