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):Budget information: Budgeted sales in cases. . . . . .9,300 casesPackaging cost per case. . . . . .$4Shipping expense per case. . . .$2Sales commission expense. . . .1% of sales priceSalaries expense. . . . . . . . . . . .$7,000Office rent. . . . . . . . . . . . . . . . .$3,800Depreciation. . . . . . . . . . . . . . .$2,600Insurance expense. . . . . . . . . .$2,500Office supplies expense. . . . . .$600 Actual expenses: Packaging cost. . . . . . . . . . . . . .$39,300Shipping expense. . . . . . . . . . . .$21,800Sales commission expense. . . . .$2,641Salaries expense. . . . . . . . . . . . .$8,500Office rent. . . . . . . . . . . . . . . . . .$3,800Depreciation. . . . . . . . . . . . . . . .$2,600Insurance expense. . . . . . . . . . .$2,300Office supplies expense. . . . . . .$1,300During the year, Stone Canyon Muffins actually sold 9,500 cases, resulting in total sales revenue of $264,100. 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).

A flexible budget performance report is the report which is used with only one purpose that is to…

Answered: Construct a flexible budget performance…

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 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

See similar textbooks

Related questions

Question

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):

Budget information:

Budgeted sales in cases. . . . . .	9,300 cases
Packaging cost per case. . . . . .	$4
Shipping expense per case. . . .	$2
Sales commission expense. . . .	1% of sales price
Salaries expense. . . . . . . . . . . .	$7,000
Office rent. . . . . . . . . . . . . . . . .	$3,800
Depreciation. . . . . . . . . . . . . . .	$2,600
Insurance expense. . . . . . . . . .	$2,500
Office supplies expense. . . . . .	$600

Actual expenses:

Packaging cost. . . . . . . . . . . . . .	$39,300
Shipping expense. . . . . . . . . . . .	$21,800
Sales commission expense. . . . .	$2,641
Salaries expense. . . . . . . . . . . . .	$8,500
Office rent. . . . . . . . . . . . . . . . . .	$3,800
Depreciation. . . . . . . . . . . . . . . .	$2,600
Insurance expense. . . . . . . . . . .	$2,300
Office supplies expense. . . . . . .	$1,300

During the year, Stone Canyon Muffins actually sold 9,500 cases, resulting in total sales revenue of $264,100.

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).

Expert Solution

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions