The actual selling expenses incurred in March 2020 by Concord Company are as follows.

Variable Expenses Fixed Expenses

Sales commissions $14,752 Sales salaries $34,900

Advertising 10,514 Depreciation 7,100

Travel 6,956 Insurance 1,900

Delivery 3,558

(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,900. 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 $34,900, Depreciation on delivery equipment $7,100, and insurance on delivery equipment $1,900. (List variable costsbefore fixed costs.)

CONCORD COMPANY

Selling Expense Flexible Budget Report

For the Month Ended March 31, 2020

Budget Actual Difference (Favorable Unfavorable Neither Favorable nor Unfavorable)

Sales $ $ $

variable Expense

Sales commissions

Advertising

Travel

Delivery

Total variable expenses

Fixed expenses

Sales salaries

Depreciation

Insurance

Total fixed expenses

Total expenses

(b) Prepare a flexible budget performance report, assuming that March sales were $181,400. (List variable costs before fixed costs.)

Budget actual Difference

Sales $ $

Variable expenses $ $ $

Sales commissions

Advertising

Travel

Delivery

Total variable

expenses

Fixed costs

Sales salaries

Depreciation

Insurance

Total fixed expenses

Total expenses