Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $174,100 to $209,200. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, traveling 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $35,100, depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,800. Prepare a monthly flexible budget for each $11,700 increment of sales within the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs.)

Exercise 22-5 Your answer is partially correct. Try again. Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $174,100 to $209,200. Variable costs and their percentage relationship to sales are sales commissions 696, advertising 496, traveling 496, and delivery 1%. Fixed selling expenses will consist of sales salaries $35,100, depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,800 Prepare a monthly flexible budget for each $11,700 increment of sales within the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs.)