Divine Muffins sells its muffins to restaurants and coffee houses for an average selling price of $31 per case. The following information relates to the budget for Divine Muffins for this year (all figures are annual totals unless otherwise noted): Budget information: Budgeted sales in cases. . . . . . 9,300 cases Packaging cost per case. . . . . . $5 Shipping expense per case. . . . $1 Sales commission expense. . . . 3% of sales price Salaries expense. . . . . . . . . . . . $6,800 Office rent. . . . . . . . . . . . . . . . . $3,100 Depreciation. . . . . . . . . . . . . . . $2,900 Insurance expense. . . . . . . . . . $2,300 Office supplies expense. . . . . . $1,300 Actual expenses: Packaging cost. . . . . . . . . . . . . . $50,600 Shipping expense. . . . . . . . . . . . $10,900 Sales commission expense. . . . . $9,423 Salaries expense. . . . . . . . . . . . . $8,400 Office rent. . . . . . . . . . . . . . . . . . $3,100 Depreciation. . . . . . . . . . . . . . . . $2,900 Insurance expense. . . . . . . . . . . $1,900 Office supplies expense. . . . . . . $1,800 During the year, DivineMuffins actually sold 9,900 cases, resulting in total sales revenue of $314,100. Requirement: Construct a flexible budget performance report for Divine Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).
Divine Muffins sells its muffins to restaurants and coffee houses for an average selling price of $31 per case. The following information relates to the budget for Divine Muffins for this year (all figures are annual totals unless otherwise noted): Budget information: Budgeted sales in cases. . . . . . 9,300 cases Packaging cost per case. . . . . . $5 Shipping expense per case. . . . $1 Sales commission expense. . . . 3% of sales price Salaries expense. . . . . . . . . . . . $6,800 Office rent. . . . . . . . . . . . . . . . . $3,100 Depreciation. . . . . . . . . . . . . . . $2,900 Insurance expense. . . . . . . . . . $2,300 Office supplies expense. . . . . . $1,300 Actual expenses: Packaging cost. . . . . . . . . . . . . . $50,600 Shipping expense. . . . . . . . . . . . $10,900 Sales commission expense. . . . . $9,423 Salaries expense. . . . . . . . . . . . . $8,400 Office rent. . . . . . . . . . . . . . . . . . $3,100 Depreciation. . . . . . . . . . . . . . . . $2,900 Insurance expense. . . . . . . . . . . $1,900 Office supplies expense. . . . . . . $1,800 During the year, DivineMuffins actually sold 9,900 cases, resulting in total sales revenue of $314,100. Requirement: Construct a flexible budget performance report for Divine Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
Related questions
Question
Divine Muffins sells its muffins to restaurants and coffee houses for an average selling price of $31 per case. The following information relates to the budget for Divine Muffins for this year (all figures are annual totals unless otherwise noted):
Budget information:
Budgeted sales in cases. . . . . .
|
9,300 cases
|
---|---|
Packaging cost per case. . . . . .
|
$5
|
Shipping expense per case. . . .
|
$1
|
Sales commission expense. . . .
|
3% of sales price
|
Salaries expense. . . . . . . . . . . .
|
$6,800
|
Office rent. . . . . . . . . . . . . . . . .
|
$3,100
|
|
$2,900
|
Insurance expense. . . . . . . . . .
|
$2,300
|
Office supplies expense. . . . . .
|
$1,300
|
Actual expenses:
Packaging cost. . . . . . . . . . . . . .
|
$50,600
|
---|---|
Shipping expense. . . . . . . . . . . .
|
$10,900
|
Sales commission expense. . . . .
|
$9,423
|
Salaries expense. . . . . . . . . . . . .
|
$8,400
|
Office rent. . . . . . . . . . . . . . . . . .
|
$3,100
|
Depreciation. . . . . . . . . . . . . . . .
|
$2,900
|
Insurance expense. . . . . . . . . . .
|
$1,900
|
Office supplies expense. . . . . . .
|
$1,800
|
During the year, DivineMuffins actually sold 9,900 cases, resulting in total sales revenue of $314,100.
Requirement:
Construct a flexible budget performance report for Divine Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning