FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The actual selling expenses incurred in March 2020 by Fallon Company are as follows.
Variable Expenses
Sales commissions $10,700
9,950
6,600 Insurance
3,350
Advertising
Travel
Delivery
Fixed Expenses
$
$
Sales salaries
Depreciation
(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%, and
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
S
$
$
Actual
$
Difference
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
V
V
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Transcribed Image Text:The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Sales commissions $10,700 9,950 6,600 Insurance 3,350 Advertising Travel Delivery Fixed Expenses $ $ Sales salaries Depreciation (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%, and 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 S $ $ Actual $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable V V
(b) Prepare a flexible budget performance report, assuming that March sales were $172,200. (List variable costs before fixed costs.)
$
Budget
FALLON COMPANY
Selling Expense Flexible Budget Report
For the Month Ended March 31, 2020
$
$
$
Actual
$
$
Difference
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
expand button
Transcribed Image Text:(b) Prepare a flexible budget performance report, assuming that March sales were $172,200. (List variable costs before fixed costs.) $ Budget FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2020 $ $ $ Actual $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable
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