Question 1 The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses $35,100 7,200 1,300 Sales commissions 10,910 Sales salaries Advertising Travel Delivery 10,220 Depreciation 6,720 Insurance 3,470 (a) Prepare a flexible budget performance report for March, assuming that March sales were $168,000. Variable costs and their percentage relationship to sales are sales commissions 690, advertising 6%, traveling 496, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,100, Depreciation on delivery equipment $7,200, and insurance on delivery equipment $1,300 (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual