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

(a) Prepare a flexible budget performance report for March, assuming that March sales were $169,100. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, Depreciation on delivery equipment $6,800, and insurance on delivery equipment $1,700. (List variable costs before fixed costs.)

(b) Prepare a flexible budget performance report, assuming that March sales were $177,300. (List variable costs before fixed costs.)

Variable Expenses Fixed Expenses Sales commissions $11,016 Sales salaries $35,000 Advertising 10,266 Depreciation 6,800 Travel 6,764 Insurance 1,700 Delivery 3,452 FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2020 Difference Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual