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

Variable Expenses				Fixed Expenses
Sales commissions		$11,272		Sales salaries		$34,900
Advertising		10,552		Depreciation		7,500
Travel		8,685		Insurance		1,600
Delivery		3,534

(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,700. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,900, Depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,600. (List variable costs before fixed costs.)

(b) Prepare a flexible budget performance report, assuming that March sales were $181,000. (List variable costs before fixed costs.)