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

Variable Expenses				Fixed Expenses
Sales commissions		$11,000		Sales salaries		$35,000
Advertising		6,900		Depreciation		7,000
Travel		5,100		Insurance		1,000
Delivery		3,450

(a) Prepare a flexible budget performance report for March, assuming that March sales were $170,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, traveling 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, Depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000. (List variable costs before fixed costs.)

Include :

Favorable Unfavorable Neither Favorable nor Unfavorable

(b) Prepare a flexible budget performance report, assuming that March sales were $180,000. (List variable costs before fixed costs.)

Include:

Favorable Unfavorable Neither Favorable nor Unfavorable

Format:

FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Differ Favoi Unfave Neither F nor Unfa Budget _ _ Actual