The actual selling expenses incurred in March 2017 by Fallon Company are as follows.

The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions Advertising Travel Delivery (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 696, traveling 496 and delivery 2%. Fixed selling expenses will consist of sales salaries $35,500 Depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,400. (List variable costs before fixed costs.) $10,870 Sales alaries 10,080 Depreciation 6,680 Insurance $35,500 7,500 1,400 3,450 FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Unfavorable Neither Favorable nor Unfavorable Budget Actual