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Exercise 24-6 The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $10,700 Sales salaries
Exercise 24-6
The actual selling expenses incurred in March 2017 by Fallon Company are as follows.
Variable Expenses | Fixed Expenses | ||
Sales commissions | $10,700 | Sales salaries | $34,500 |
Advertising | 9,950 | Depreciation | 6,500 |
Travel | 6,600 | Insurance | 1,000 |
Delivery | 3,350 |
(a)Prepare a flexible budget performance report for March, assuming that March sales were $165,000. Variable costs and their percentage relationship to sales are sales commissions6%, advertising6%, traveling4%, and delivery2%. Fixed selling expenses will consist of sales salaries $34,500, Depreciation on delivery equipment $6,500, and insurance on delivery equipment $1,000.(List variable costs before fixed costs.)
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