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

Variable Expenses				Fixed Expenses
Sales commissions		$12,576		Sales salaries		$35,400
Advertising		11,876		Depreciation		7,500
Travel		8,390		Insurance		2,000
Delivery		3,446

(a) Prepare a flexible budget performance report for March, assuming that March sales were $167,800. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 7%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,400, Depreciation on delivery equipment $7,500, and insurance on delivery equipment $2,000. (List variable costs before fixed costs.)

(TABLE ATTACHED IN QUESTION)

(b) Prepare a flexible budget performance report, assuming that March sales were $175,400. (List variable costs before fixed costs.)

(UNABLE TO ATTACH SECOND TABLE TO QUESTION)

FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales Variable Costs Advertising Travel Delivery Total Variable Costs Fixed Costs Sales Salaries (b) Prepare a flexible budget performance report, assuming that March sales were $175,400. (List variable costs b FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual