The actual selling expenses incurred in March 2020 by Fallon
Company are as follows.
Variable Expenses |
Fixed Expenses |
|||||
---|---|---|---|---|---|---|
Sales commissions | $11,272 | Sales salaries | $34,900 | |||
Advertising | 10,552 | Depreciation | 7,500 | |||
Travel | 8,685 | Insurance | 1,600 | |||
Delivery | 3,534 |
(a) Prepare a flexible budget performance report
for March, assuming that March sales were $173,700. Variable costs
and their percentage relationship to sales are sales commissions
6%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling
expenses will consist of sales salaries $34,900, Depreciation on
delivery equipment $7,500, and insurance on delivery equipment
$1,600. (List variable costs before fixed
costs.)
(b) Prepare a flexible budget performance report, assuming that March sales were $181,000. (List variable costs before fixed costs.)
Answer-a)-
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% | $173700*6%=$10422 | 11272 | -850 | Unfavorable |
Advertising 6% | $173700*6%=$10422 | 10552 | -130 | Unfavorable |
Travel 5% | $173700*5%=$8685 | 8685 | 0 | None |
Delivery 2% | $173700*2%=$3474 | 3534 | -60 | Unfavorable |
Total Variable expenses (a) | 33003 | 34043 | -1040 | 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) | 77003 | 78043 | -1040 | Unfavorable |
b)-
FALLON COMPANY | ||||
Selling Expense Flexible Budget Report | ||||
For the month ended March 31,2017 | ||||
Particulars | Flexible Budget | Actual Costs | Differences | Remark |
$ | $ | $ | ||
Variable Expesnes:- | ||||
Sales commissions 6% | $181000*6%=$10860 | 11272 | -412 | Unfavorable |
Advertising 6% | $181000*6%=$10860 | 10552 | 308 | Favorable |
Travel 5% | $181000*5%=$9050 | 8685 | 365 | Favorable |
Delivery 2% | $181000*2%=$3620 | 3534 | 86 | Favorable |
Total Variable expenses (a) | 34390 | 34043 | 347 | Favorable |
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) | 78390 | 78043 | 347 | Favorable |
The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses...
The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Fixed Expenses Sales salaries$34,900 Depreciation 6,600 Insurance1,300 Variable Expenses Sales commissions$11,340 Advertising 12,280 Travel 6,960 Delivery 3,600 (a) Prepare a flexible budget performance report for March, assuming that March sales were $174,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 7%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,900, Depreciation on delivery equipment $6,600, and...
The actual selling expenses incurred in March 2020 by Fallon
Company are as follows.
(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 6%, 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.)
(b) Prepare a flexible budget performance...
Exercise 22-6
The actual selling expenses incurred in March 2017 by Fallon
Company are as follows.
Variable Expenses
Fixed Expenses
Sales commissions
$10,880
Sales salaries
$35,400
Advertising
10,040
Depreciation
7,000
Travel
6,660
Insurance
2,000
Delivery
3,410
(a) Prepare a flexible budget performance report
for March, assuming that March sales were $166,500. 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 $35,400, Depreciation...
The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Sales commissions $12,741 Advertising 10,258 Travel 6,772 Delivery 3,446 Fixed Expenses Sales salaries $35,300 Depreciation 7,000 Insurance 1,800 (a) Prepare a flexible budget performance report for March, assuming that March sales were $169,300. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,300, Depreciation on delivery...
Exercise 22-6 The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Sales commissions $11,340 Advertising 12,280 Travel 6,960 Delivery 3,600 Fixed Expenses Sales salaries $34,900 Depreciation 6,600 Insurance 1,300 (a) Prepare a flexible budget performance report for March, assuming that March sales were $ commissions 6%, advertising 7%, traveling 4%, and delivery 2%. Fixed selling expenses will co $6,600, and insurance on delivery equipment $1,300. (List variable costs before fixed costs CALCULATOR FULL...
Question 11 View Policies Current Attempt in Progress The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions Advertising Travel $14,228 Sales salaries 10,086 Depreciation 8,355 Insurance $35,000 7,200 1,900 Delivery 3.422 (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,100. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will...
Exercise 24-6 The actual selling axpenses incurred in March 2017 by Fallon Company are as follows Variable Ex Fixed Ex $35,300 7.400 1,600 Sales commissions 12,840 Sales salaries Travel Delivery 10,370 Depreciotion 8,6 nturance 3,530 a prepare a ne ble budget performance eport fo March, assuming that March sales ere 172,000 Variable costs and their percentage relationship to sales are sales con missions 7% advertising 6% traveling 5%, and delivery 2%, Fixed selling expenses will consist of sa salaries 35,300,...
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....
Question 4 -/1 ew Policies arrent Attempt in Progress The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,688 Sales salaries $34,600 Advertising 10,476 Depreciation 6,600 Travel 6,924 Insurance 2,000 Delivery 3,552 (a) Prepare a flexible budget performance report for March, assuming that March sales were $173,100. Variable costs and their percentage relationship to sales are sales commissions 8 % , advertising 6 % , traveling 4 % ,...
Fallon Company uses flexible budgets to control its selling
expenses. Monthly sales are expected to range from $174,100 to
$209,200. Variable costs and their percentage relationship to sales
are sales commissions 6%, advertising 4%, traveling 4%, and
delivery 1%. Fixed selling expenses will consist of sales salaries
$35,100, depreciation on delivery equipment $7,500, and insurance
on delivery equipment $1,800.
Prepare a monthly flexible budget for each $11,700 increment of
sales within the relevant range for the year ending December 31,...