Sales revenue Boston Muffins Flexible Budget Performance Report - Sales and Operating Expenses For the Year Ended December 31 Flexible Flexible Master Actual 9,500 cases Budget Variance Budget 9,500 cases Volume Budget Variance 9,400 cases 254,400 $ 7,400 F $ 247,000 $2,600 F 244,400 ($26 per case) Less variable expenses: Packaging expense ($3 per case sold) 28,800 300 U 28,500 300 U 28,200 Shipping expense ($5 per case sold) 48,300 800 U 47,500 500 U 47,000 10,176 Sales commissions (4% of sales price) 296 U 9,880 104 U 9,776 Contribution margin 167,124 6,004 F 161,120 1,696 F 159,424 Less fixed expenses: Salaries Office rent Depreciation Insurance expense Office Supplies expense Operating income 7,900 900 U 7,000 0 F 7,000 4,100 0 F 4,100 0 F 4,100 2,900 0 F 2,900 0 F 2,900 1,400 600 F 2,000 0 F 2,000 600 100 U 500 0 F 500 150,224 LL F 144,620 1,696 F 142,924
Boston 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 Boston Muffins for this year (all figures are annual totals unless otherwise noted):
Budget information
Budgeted sales in cases. . . . . . .9,400 cases
Packaging cost per case. . . . . . .$3
Shipping expense per case. . . . .$5
Sales commission expense. . . .4% of sales price
Salaries expense. . . . . . . . . . . . .$7,000
Office rent. . . . . . . . . . . . . . . . . . .$4,100
Depreciation. . . . . . . . . . . . . . . . .$2,900
Insurance expense. . . . . . . . . . . .$2,000
Office supplies expense. . . . . . .$500
Actual expenses
Packaging cost. . . . . . . . . . . . . . . .$28,800
Shipping expense. . . . . . . . . . . . . .$48,300
Sales commission expense. . . . . .$10,176
Salaries expense. . . . . . . . . . . . . . .$7,900
Office rent. . . . . . . . . . . . . . . . . . . .$4,100
Depreciation. . . . . . . . . . . . . . . . . .$2,900
Insurance expense. . . . . . . . . . . . .$1,400
Office supplies expense. . . . . . . .$600
During the year, Boston Muffins actually sold 9,500 cases, resulting in total sales revenue of $254,400.
Construct a flexible budget performance report for Boston Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).
Boston 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 Boston Muffins for this year (all figures are annual totals unless otherwise noted):
Budget information
Budgeted sales in cases. . . . . . .9,400 cases
Packaging cost per case. . . . . . .$3
Shipping expense per case. . . . .$5
Sales commission expense. . . .4% of sales price
Salaries expense. . . . . . . . . . . . .$7,000
Office rent. . . . . . . . . . . . . . . . . . .$4,100
Depreciation. . . . . . . . . . . . . . . . .$2,900
Insurance expense. . . . . . . . . . . .$2,000
Office supplies expense. . . . . . .$500
Actual expenses
Packaging cost. . . . . . . . . . . . . . . .$28,800
Shipping expense. . . . . . . . . . . . . .$48,300
Sales commission expense. . . . . .$10,176
Salaries expense. . . . . . . . . . . . . . .$7,900
Office rent. . . . . . . . . . . . . . . . . . . .$4,100
Depreciation. . . . . . . . . . . . . . . . . .$2,900
Insurance expense. . . . . . . . . . . . .$1,400
Office supplies expense. . . . . . . .$600
During the year, Boston Muffins actually sold 9,500 cases, resulting in total sales revenue of $254,400.
Construct a flexible budget performance report for Boston Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U).
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