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

Variable Expenses				Fixed Expenses
Sales commissions		$11,178		Sales salaries		$35,100
Advertising		12,156		Depreciation		6,500
Travel		6,912		Insurance		1,900
Delivery		3,576

(a) Prepare a flexible budget performance report for March, assuming that March sales were $172,800. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 7%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,100, Depreciation on delivery equipment $6,500, and insurance on delivery equipment $1,900. (List variable costs before fixed costs.)

(b) Prepare a flexible budget performance report, assuming that March sales were $180,500. (List variable costs before fixed costs.)