STEP BY STEP PLEASE. Part BRDX uses flexible budgets to control its selling expenses. Variable costs as a percentage of sales are asfollows:Sales commissions 5%Advertising4%Traveling7%Delivery1%Fixed selling expenses consist of sales salaries $45,500 and depreciation on delivery equipment $12,000.The actual selling expenses incurred in February 2019, by RDX are as follows:Sales commissions$19,200Advertising$12,800Traveling$20,200Delivery$3,600Actual fixed selling expenses consist of sales salaries $41,500 and depreciation on delivery equipment$12,000.Required: Assuming that February sales were $330,000, prepare a flexible budget performance reportfor February. For each item in the report state where applicable, if the difference is Favourable orUnfavourable.

A budget that can be adapted to the activity or volume levels of a corporation is referred to as a…

Part B RDX uses flexible budgets to control its selling expenses. Variable costs as a percentage of sales are as follows: Sales commissions 5% Advertising 4% Traveling 7% Delivery 1% Fixed selling expenses consist of sales salaries $45,500 and depreciation on delivery equipment $12,000. The actual selling expenses incurred in February 2019, by RDX are as follows: Sales commissions $19,200 $12,800 Advertising Traveling Delivery $20,200 $3,600 Actual fixed selling expenses consist of sales salaries $41,500 and depreciation on delivery equipment $12,000. Required: Assuming that February sales were $330,000, prepare a flexible budget performance report for February. For each item in the report state where applicable, if the difference is Favourable or Unfavourable.

Part B RDX uses flexible budgets to control its selling expenses. Variable costs as a percentage of sales are as follows: Sales commissions 5% Advertising 4% Traveling 7% Delivery 1% Fixed selling expenses consist of sales salaries $45,500 and depreciation on delivery equipment $12,000. The actual selling expenses incurred in February 2019, by RDX are as follows: Sales commissions $19,200 $12,800 Advertising Traveling Delivery $20,200 $3,600 Actual fixed selling expenses consist of sales salaries $41,500 and depreciation on delivery equipment $12,000. Required: Assuming that February sales were $330,000, prepare a flexible budget performance report for February. For each item in the report state where applicable, if the difference is Favourable or Unfavourable.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 16E

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