The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Sales commissions $10,700 Sales salaries 9,950 Depreciation Advertising Travel Delivery Fixed Expenses 6,600 Insurance 3,350 V (a) Prepare a flexible budget performance report for March, assuming that March sales were $165,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 4%; delivery 2%. Fixed selling expenses will consist of sales salaries $34,500, Depreciation on delivery equipment $6,500, and insurance on delivery equipment $1,000. (List variable costs before fixed costs.) $34,500 6,500 1,000 Budget FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2020 $ $ Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable

The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Sales commissions $10,700 Sales salaries 9,950 Depreciation Advertising Travel Delivery Fixed Expenses 6,600 Insurance 3,350 V (a) Prepare a flexible budget performance report for March, assuming that March sales were $165,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 4%; delivery 2%. Fixed selling expenses will consist of sales salaries $34,500, Depreciation on delivery equipment $6,500, and insurance on delivery equipment $1,000. (List variable costs before fixed costs.) $34,500 6,500 1,000 Budget FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2020 $ $ Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...

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