E10 5 Prepare flexible manufacturing overhead budget Fallon Company uses flexible budgets to control its selling expenses Monthly sales are expected to range from $170,000 to $200,000 Variable costs and their percentage relationship to sales are sales commissions 6 , advertising 4 , traveling 3 , and delivery 2 Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000 Instructions Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2017 NOTE Enter a number in cells requesting a value enter either a number or a formula in cells with a FALLON COMPANY Monthly Selling Expense Flexible Budget For the Year 2017 Activity level Sales Revenue $170,000 $180,000 $190,000 $200,000 Variable expenses Sales commissions (6 ) Choose $10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800 Choose $10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800 Choose $10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800 Choose $10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800 Advertising (4 ) Choose $10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800 Choose $10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800 Choose $10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800 Choose $10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800 Traveling (3 ) Choose 4,0005,7003,4003,6005,1003,8005,4006,000 Choose 4,0005,7003,4003,6005,1003,8005,4006,000 Choose 4,0005,7003,4003,6005,1003,8005,4006,000 Choose 4,0005,7003,4003,6005,1003,8005,4006,000 Delivery (2 ) Choose 4,0005,7003,4003,6005,1003,8005,4006,000 Choose 4,0005,7003,4003,6005,1003,8005,4006,000 Choose 4,0005,7003,4003,6005,1003,8005,4006,000 Choose 4,0005,7003,4003,6005,1003,8005,4006,000 Total variable expenses (15 ) Choose 28,50030,00027,00025,500 Choose 28,50030,00027,00025,500 Choose 28,50030,00027,00025,500 Choose 28,50030,00027,00025,500 Fixed expenses Sales salaries Choose $68,500 7,00035,00043,0001,000 Choose 7,0001,00043,000$70,000 35,000 Choose 35,0007,00043,000$71,500 1,000 Choose $73,000 35,0007,0001,00043,000 Depreciation Choose $68,500 7,00035,00043,0001,000 Choose 7,0001,00043,000$70,000 35,000 Choose 35,0007,00043,000$71,500 1,000 Choose $73,000 35,0007,0001,00043,000 Insurance Choose $68,500 7,00035,00043,0001,000 Choose 7,0001,00043,000$70,000 35,000 Choose 35,0007,00043,000$71,500 1,000 Choose $73,000 35,0007,0001,00043,000 Total fixed expenses Choose $68,500 7,00035,00043,0001,000 Choose 7,0001,00043,000$70,000 35,000 Choose 35,0007,00043,000$71,500 1,000 Choose $73,000 35,0007,0001,00043,000 Total expenses Choose $68,500 7,00035,00043,0001,000 Choose 7,0001,00043,000$70,000 35,000 Choose 35,0007,00043,000$71,500 1,000 Choose $73,000 35,0007,0001,00043,000

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E10-5 Prepare flexible manufacturing overhead budget Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to

E10-5 Prepare flexible manufacturing overhead budget

Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, traveling 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000.

Instructions

Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2017.

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

FALLON COMPANY Monthly Selling Expense Flexible Budget For the Year 2017

Activity level
Sales Revenue	$170,000	$180,000	$190,000	$200,000
Variable expenses
Sales commissions (6%)	Choose...$10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800	Choose...$10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800	Choose...$10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800	Choose...$10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800
Advertising (4%)	Choose...$10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800	Choose...$10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800	Choose...$10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800	Choose...$10,200 $12,000 $11,400 7,2007,600$10,800 8,0006,800
Traveling (3%)	Choose...4,0005,7003,4003,6005,1003,8005,4006,000	Choose...4,0005,7003,4003,6005,1003,8005,4006,000	Choose...4,0005,7003,4003,6005,1003,8005,4006,000	Choose...4,0005,7003,4003,6005,1003,8005,4006,000
Delivery (2%)	Choose...4,0005,7003,4003,6005,1003,8005,4006,000	Choose...4,0005,7003,4003,6005,1003,8005,4006,000	Choose...4,0005,7003,4003,6005,1003,8005,4006,000	Choose...4,0005,7003,4003,6005,1003,8005,4006,000
Total variable expenses (15%)	Choose...28,50030,00027,00025,500	Choose...28,50030,00027,00025,500	Choose...28,50030,00027,00025,500	Choose...28,50030,00027,00025,500
Fixed expenses
Sales salaries	Choose...$68,500 7,00035,00043,0001,000	Choose...7,0001,00043,000$70,000 35,000	Choose...35,0007,00043,000$71,500 1,000	Choose...$73,000 35,0007,0001,00043,000
Depreciation	Choose...$68,500 7,00035,00043,0001,000	Choose...7,0001,00043,000$70,000 35,000	Choose...35,0007,00043,000$71,500 1,000	Choose...$73,000 35,0007,0001,00043,000
Insurance	Choose...$68,500 7,00035,00043,0001,000	Choose...7,0001,00043,000$70,000 35,000	Choose...35,0007,00043,000$71,500 1,000	Choose...$73,000 35,0007,0001,00043,000
Total fixed expenses	Choose...$68,500 7,00035,00043,0001,000	Choose...7,0001,00043,000$70,000 35,000	Choose...35,0007,00043,000$71,500 1,000	Choose...$73,000 35,0007,0001,00043,000

Total expenses	Choose...$68,500 7,00035,00043,0001,000	Choose...7,0001,00043,000$70,000 35,000	Choose...35,0007,00043,000$71,500 1,000	Choose...$73,000 35,0007,0001,00043,000