Crede Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,200 in January, $34,525 in February, and $46,000 in March. The company considers any difference that is less than 5% of the budgeted amount to be immaterial.

1-What is the purpose of the selling expense report, and who would be the primary recipient?

2-What would be the likely result of managements analysis of the report?

CREDE COMPANY Selling Expense Report For the Quarter Ending March 31
		By Month							Year-to-Date
Month		Budget		Actual		Difference			Budget		Actual		Difference
January		$30,000		$31,200		$1,200	U		$30,000		$31,200		$1,200	U
February		$35,000		$34,525		$475			$65,000		$65,725		$725	U
March		$40,000		$46,000		$6,000	U		$105,000		$111,725		$6,725	U