harder 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 commissions6%

Advertising4%

Traveling5%

Delivery1%

Fixed selling expenses consist of sales salaries $40,000 and depreciation on delivery equipment $10,000.

Theactualselling expenses incurred in February, 2008, by Monkton Company are as follows:

Sales commissions$13,700

Advertising8,000

Traveling11,300

Delivery1,600

Theactualfixed selling expenses in the month were 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.