Hall Company uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $200,000 to $240,000. Variable costs and their percentage relationships to sales are:

Sales commissions 6% Advertising 4% Traveling 5% Delivery 1%

Fixed selling expenses consist of Sales Salaries $39,000 and Depreciation on Delivery Equipment $10,000.

The actual variable selling expenses incurred in February, by Hall Company are as follows:

Sales commissions $13,700 Advertising 8,000 Traveling 11,300 Delivery 1,600

The actual fixed selling expenses incurred in February, consist of Sales Salaries $41,000 and Depreciation on Delivery Equipment $10,000.

Instructions: Prepare a flexible budget performance report, assuming that February sales were $220,000. Expected and actual sales are the same.