Budgeting Process and Flexible Budgeting: A service company uses a flexible budgeting approach for its sales department. The budgeted expenses for sales commissions are as follows:

80% of sales revenue up to $100,000

10% of sales revenue between $100,000 and $200,000

5% of sales revenue above $200,000

If the company's actual sales revenue for the month is $150,000, calculate the budgeted expenses for sales commissions using the flexible budgeting approach and discuss the advantages of this approach for cost management and performance evaluation.