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

Variable Expenses Fixed Expenses

Sales commissions $11,116 Sales salaries $34,500

Advertising 12,012 Depreciation 6,700

Travel 6,824 Insurance 1,900

Delivery 3,472

(a)Prepare a flexible budget performance report for March, assuming that March sales were $170,600. Variable costs and their percentage relationship to sales are sales commissions6%, advertising7%, traveling4%, and delivery2%. Fixed selling expenses will consist of sales salaries $34,500, Depreciation on delivery equipment $6,700, 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 $178,600.(List variable costs before fixed costs.)