Exercise 22-6

The actual selling expenses incurred in March 2017 by Fallon Company are as follows.

Variable Expenses				Fixed Expenses
Sales commissions		$10,880		Sales salaries		$35,400
Advertising		10,040		Depreciation		7,000
Travel		6,660		Insurance		2,000
Delivery		3,410

(a) Prepare a flexible budget performance report for March, assuming that March sales were $166,500. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,400, Depreciation on delivery equipment $7,000, and insurance on delivery equipment $2,000. (List variable costs before fixed costs.)

Exercise 22-6 The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Sales commissions $10,880 Advertising 10,040 Travel 6,660 Delivery 3,410 Fixed Expenses Sales salaries $35,400 Depreciation 7,000 Insurance 2,000 (a) Prepare a flexible budget performance report for March, assuming that March sales were $166,500. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,400, Depreciation on delivery equipment $7,000, and insurance on delivery equipment $2,000. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual (b) Prepare a flexible budget performance report, assuming that March sales were $175,100. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual