Question

View Policies Current Attempt in Progress aport The actual selling expenses incurred in March 2020 by Fallon Company are as follows Variable Expenses Fixed Expenses Sales commissions $11,180 Sales salaries $35,500 pport Advertising 10,530 Depreciation 7,400 Travel 6,920 Insurance 1,100 Delivery 3,580 (a) Prepare a flexible budget performance report for March, assuming that March sales were $173,000. Variable costs and their percentage relationship to sales are sales commissions 6 %, advertising 6%, traveling 4 % , and delivery 2 6. Fioxed selling expenses will consist of sales salaries $35,500, Depreciation on delivery equipment $7,400, and insurance on delivery equipment $1,100. (List variable costs before foxed costs) FALLON COMPANY Selling Expense Flexible Budget Report 728 PM a arch 11/12/209 hp detete ome um ock backsoace 6 P U Y home enter K J H F G pause shitt C V B N

Answer 1

Answer-

FALLON COMPANY
Selling Expense Flexible Budget Report
For the month ended March 31,2017
Particulars	Flexible Budget	Actual Costs	Differences	Remark
	$	$	$
Variable Expenses:-
Sales commissions 6%	$173000*6%=$10380	11180	-800	Unfavorable
Advertising 6%	$173000*6%=$10380	10530	-150	Unfavorable
Travel 4%	$173000*4%=$6920	6920	0	None
Delivery 2%	$173000*2%=$3460	3580	-120	Unfavorable
Total Variable expenses (a)	31140	32210	-1070	Unfavorable
Fixed Expenses:-
Sales salaries	34900	34900	0	None
Depreciation	7500	7500	0	None
Insurance	1600	1600	0	None
Total Fixed expenses (b)	44000	44000	0	None
Total Expenses (c=a+b)	75140	76210	-1070	Favorable