Trusler Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are: Sales Commissions 5%, Advertising 4%, Traveling 3%, and Delivery 2%. Fixed selling expenses will consist of Sales Salaries $34,000, Depreciation on Delivery Equipment $7,000, and Insurance on Delivery Equipment $1,000.

Instructions

Complete the monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2012

TRUSLER COMPANY

Monthly Flexible Selling Expense Budget

For the Year 2012

Activity Level

Sales ___ ___ ___ ___

Variable Costs

Sales Commision ___ ___ ___ ___

Advertising ___ ___ ___ ___

Traveling ___ ___ ___ ___

Delivery ___ ___ ___ ___

Total Variable Expenses ___ ___ ___ ___

Fixed Costs

Depreciation ___ ___ ___ ___

Insurance ___ ___ ___ ___

Total fixed expenses ___ ___ ___ ___