Question 1 The Kellerman 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 7% Advertising 4% Traveling 6% Delivery 1% Fixed selling expenses consist of Sales Salaries $40,000 and Depreciation on Delivery Equipment $10,000. The actual selling expenses incurred in February 2017, by Kellerman Company are as follows: Sales commissions $15,700 Advertising 8,000 Travelling 13,300 Delivery 1,600 Actual fixed selling expenses consisted of Sales Salaries of $41,500 and Depreciation on Delivery Equipment of $10,000. Instructions Prepare a flexible budget performance report, assuming that February sales were $ 220,000. Expected and actual sales are the same. (Complete the budget template in the quiz tool) KELLERMAN COMPANY Selling Expense Budget Report (Flexible) Month ended February 28, 2017 Actual Results Flexible Budget Difference Favourable F Unfavourable U Sales $220,000 $220,000 Variable expenses Sales commissions Advertising Traveling Delivery Total variable Fixed expenses Sales salaries Depreciation Total fixed Total expenses Net Profit