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The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,688 Sales salaries $34,600 Advertising
The actual selling expenses incurred in March 2017 by Fallon Company are as follows.
Variable Expenses | Fixed Expenses | |||||
Sales commissions | $14,688 | Sales salaries | $34,600 | |||
Advertising | 10,476 | Depreciation | 6,600 | |||
Travel | 6,924 | Insurance | 2,000 | |||
Delivery | 3,552 |
(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,100. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,600, Depreciation on delivery equipment $6,600, and insurance on delivery equipment $2,000. (List variable costs before fixed costs.)
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