The actual selling expenses incurred in March 2014 by DeWitt Company are as follows.

Variable Expenses Fixed Expenses Sales commissions $11,000 Sales salaries $35,000 Advertising 6,900 Depreciation 7,000 Travel 5,100 Insurance 1,000 Delivery 3,450 Instructions

(a) Prepare a fl exible budget performance report for March using the budget data in E22-5, assuming that March sales were $170,000.

(b) Prepare a fl exible budget performance report, assuming that March sales were $180,000.

(c) Comment on the importance of using fl exible budgets in evaluating the performance of the sales manager.

AppendixLO1