Gamlouch Industries uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $200,000 to $240,000. Variable costs and their percentage relationships to sales are:

Fixed selling expenses consist of sales salaries $40,000 and depreciation on delivery equipment $10,000.
The actual selling expenses incurred in February, 2014, by Gamlouch Industries are as follows:

Fixed selling expenses consist of sales salaries $41,000 and depreciation on delivery equipment $10,000.
Requirement Prepare a flexible budget performance report, assuming that February sales were $220,000.

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