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.)