Question

Exercise 10-6 a-b Your answer is partially correct. Try again. The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Sales commissions $11,016 Advertising 10,266 Travel 6,764 3,452 Fixed Expenses Sales salaries $35.000 Depreciation 6,800 Insurance 1,700 Delivery (a) Prepare a flexible budget performance report for March, assuming that March sales were $169,100. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 5%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, Depreciation on delivery equipment $6,800, and insurance on delivery equipment $1,700. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 169100 Sales Variable Expenses Sales Commissions 10146 11016 870|| Unfavorable Advertising DIE 10146 10266 120|Unfavorable Travel 67641 6764 Neither Favorable nor Unfavorable

just provide me the answer that I lost, thanks

Answer 1

Solution a:

Fallon Company
Selling Expense Flexible Budget Report
For the month ended March 31, 2020
Particulars	Budget	Actual	Difference	Favorable / Unfavorable / Neither favorable nor unfavorable
Sales	$169,100.00	$169,100.00
Variable Expenses:
Sales Commissions	$10,146.00	$11,016.00	$870.00	Unfavorable
Advertising	$10,146.00	$10,266.00	$120.00	Unfavorable
Travel	$6,764.00	$6,764.00	$0.00	Neither Favorable nor Unfavorable
Delivery	$3,382.00	$3,452.00	$70.00	Unfavorable
Total Variable Expenses	$30,438.00	$31,498.00	$1,060.00	Unfavorable
Fixed Expenses:
Sales Salaries	$35,000.00	$35,000.00	$0.00	Neither Favorable nor Unfavorable
Depreciation	$6,800.00	$6,800.00	$0.00	Neither Favorable nor Unfavorable
Insurance	$1,700.00	$1,700.00
Total Fixed Expenses	$43,500.00	$43,500.00	$0.00	Neither Favorable nor Unfavorable
Total Expenses	$73,938.00	$74,998.00	$1,060.00	Unfavorable

Solution b:

Fallon Company
Selling Expense Flexible Budget Report
For the month ended March 31, 2020
Particulars	Budget	Actual	Difference	Favorable / Unfavorable / Neither favorable nor unfavorable
Sales	$177,300.00	$177,300.00
Variable Expenses:
Sales Commissions	$10,638.00	$11,016.00	$378.00	Unfavorable
Advertising	$10,638.00	$10,266.00	$372.00	Favorable
Travel	$7,092.00	$6,764.00	$328.00	Favorable
Delivery	$3,546.00	$3,452.00	$94.00	Favorable
Total Variable Expenses	$31,914.00	$31,498.00	$416.00	Favorable
Fixed Expenses:
Sales Salaries	$35,000.00	$35,000.00	$0.00	Neither Favorable nor Unfavorable
Depreciation	$6,800.00	$6,800.00	$0.00	Neither Favorable nor Unfavorable
Insurance	$1,700.00	$1,700.00
Total Fixed Expenses	$43,500.00	$43,500.00	$0.00	Neither Favorable nor Unfavorable
Total Expenses	$75,414.00	$74,998.00	$416.00	Favorable