Question

Partially correct answer. Your answer is partially correct. Try again. The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,228 Sales salaries $35,000 Advertising 10,086 Depreciation 7,200 Travel 8,355 Insurance 1,900 Delivery 3,422 (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,100. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, Depreciation on delivery equipment $7,200, and insurance on delivery equipment $1,900. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Entry field with correct answer Entry field with correct answer $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with correct answer Entry field with correct answer (b) Prepare a flexible budget performance report, assuming that March sales were $175,500. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer Entry field with incorrect answer Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Entry field with incorrect answer

Answer 1

Part A

Fallon company

Selling expense flexible budget report

For the Month Ended March 31, 2017

	Budget	actual	difference	favorable or Unfavorable
Sales	167100	167100
Variable expenses
Sales commission	13368 (167100*8%)	14228	860	U
Advertising	10026 (167100*6%)	10086	60	U
Travel	8355 (167100*5%)	8355	-
Delivery	3342 (167100*2%)	3422	80	U
Total variable expenses	35091	36091	1000	U
Fixed expenses
Sales Salaries	35000	35000	-
Depreciation	7200	7200	-
Insurance	1900	1900	-
Total fixed expenses	44100	44100	-
Total expenses	79191	80191	1000	U

Part B

Fallon company

Selling expense flexible budget report

For the Month Ended March 31 2017

	Budget	actual	difference	favorable or Unfavorable
Sales	175500	175500
Variable expenses
Sales commission	14040 (175500*8%)	14228	188	U
Advertising	10530 (175500*6%)	10086	444	F
Travel	8775 (175500*5%)	8355	420	F
Delivery	3510 (175500*2%)	3422	88	F
Total variable expenses	36855	36091	764	F
Fixed expenses
Sales Salaries	35000	35000
Depreciation	7200	7200
Insurance	1900	1900
Total fixed expenses	44100	44100
Total expenses	80955	80191	764	F