Variable Expenses Fixed Expenses Sales commissions $10,870 Sales salaries $35,500 Advertising 10,080 Depreciation 7,500 Travel 6,680 Insurance 1,400 Delivery 3,450 (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,000. 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 $35,500, Depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,400. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable s 167,000 $167,000 Variable Costs Sales Commissions $10,020 10,020 j B50 Unfavorable Advertising 10,020 10,080 650 Unfavorable Travel 6,680 6.630 Neither Favorable nor U Deliver 3.340 3450 110 unfavorable 30,060 31.080 1.020 Fixed Costs Sales salaries 35.500 35.500 o Neither Favorable nor 7.500 7.500 0 Neither Favorable nor U Depreciation 1.400 1.400 Neither Favorable nor U Insurance Total Fixed costs 44,000 44,000 0 Neither Favorable nor U Total Fixed Costs