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 (all figures are annual totals unless otherwise noted):
Budgeted sales in cases ……….. 9,300
Packaging cost per case ………$4.00
Shipping expense per case ……. $2.00
Sales commission expense ……. 1% of sales price
Salaries expense ………. $7,000
Office rent ……… $3,000
Depreciation …………$2,600
Insurance expense ……. $2,500
Office supplies expense …… $600
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 …………. $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).