Dream Muffins sells its muffins to restaurants and coffee houses for an average selling price of $32 per case. The following information relates to the budget for Dream Muffins for this year (all figures are annual totals unless otherwise noted): Sales revenue ($32 per case) Dream Muffins Flexible Budget Performance Report - Sales and Operating Expenses For the Year Ended December 31 Flexible Flexible Actual 8,900 cases Budget Variance Budget 8,900 cases Volume Master Budget Variance 8,800 cases Actual expenses Requirement Construct a flexible budget performance report for Dream Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U). Office rent Print Done Packaging cost $ 10,200 Shipping expense $ 18,300 Sales commission expense $ 8,760 Salaries expense $ 8,100 $ 3,600 Depreciation 3,200 Insurance expense .. $ 900 Office supplies expense 800 During the year, DreamMuffins actually sold 8,900 Budget information Budgeted sales in cases...... 8,800 cases Packaging cost per case Shipping expense per case $ 2 Sales commission expense 3% of sales price Salaries expense 6,500 Office rent 3,600 Depreciation 3,200 Insurance expense 1,500 - X Office supplies expense. S 700 Print Done

Dream Muffins sells its muffins to restaurants and coffee houses for an average selling price of $32 per case. The following information relates to the budget for Dream Muffins for this year (all figures are annual totals unless otherwise noted): Sales revenue ($32 per case) Dream Muffins Flexible Budget Performance Report - Sales and Operating Expenses For the Year Ended December 31 Flexible Flexible Actual 8,900 cases Budget Variance Budget 8,900 cases Volume Master Budget Variance 8,800 cases Actual expenses Requirement Construct a flexible budget performance report for Dream Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U). Office rent Print Done Packaging cost $ 10,200 Shipping expense $ 18,300 Sales commission expense $ 8,760 Salaries expense $ 8,100 $ 3,600 Depreciation 3,200 Insurance expense .. $ 900 Office supplies expense 800 During the year, DreamMuffins actually sold 8,900 Budget information Budgeted sales in cases...... 8,800 cases Packaging cost per case Shipping expense per case $ 2 Sales commission expense 3% of sales price Salaries expense 6,500 Office rent 3,600 Depreciation 3,200 Insurance expense 1,500 - X Office supplies expense. S 700 Print Done

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...

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