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

Variable Expenses				Fixed Expenses
Sales commissions		$12,576		Sales salaries		$35,400
Advertising		11,876		Depreciation		7,500
Travel		8,390		Insurance		2,000
Delivery		3,446

(a) Prepare a flexible budget performance report for March, assuming that March sales were $175,400. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 7%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,400, Depreciation on delivery equipment $7,500, and insurance on delivery equipment $2,000. (List variable costs before fixed costs.)