The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses...

The actual selling expenses incurred in March 2020 by Fallon Company are as follows.

Variable Expenses		Fixed Expenses
Sales commissions	$11,178	Sales salaries	$35,100
Advertising	12,156	Depreciation	6,500
Travel	6,912	Insurance	1,900
Delivery	3,576

(a) Prepare a flexible budget performance report for March, assuming that March sales were $172,800. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 7%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,100, Depreciation on delivery equipment $6,500, and insurance on delivery equipment $1,900. (List variable costs before fixed costs.)

(b) Prepare a flexible budget performance report, assuming that March sales were $180,500. (List variable costs before fixed costs.)

Expert Solution

ekkarill92 answered 3 years ago

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