Question

Crede Company budgeted selling expenses of $29,000 in January, $34,000 in February, and $39,000 in March. Actual selling expenses were $30,000 in January, $33,700 in February, and $45,000 in March. The company considers any difference that is less than 5% of the budgeted amount to be immaterial.

Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.

CREDE COMPANY Selling Expense Report For the Quarter Ending March 31

By Month

Year-to-Date

Month

Budget

Actual

Difference

Budget

Actual

Difference

January

$

$

$

FavorableUnfavorableNeither favorable nor unfavorable

$

$

$

FavorableUnfavorableNeither favorable nor unfavorable

February

$

$

$

FavorableUnfavorableNeither favorable nor unfavorable

$

$

$

FavorableUnfavorableNeither favorable nor unfavorable

March

$

$

$

FavorableUnfavorableNeither favorable nor unfavorable

$

$

$

FavorableUnfavorableNeither favorable nor unfavorable

Answer 1

	By Month				Year - to - date
Month	Budget	Actual	Differences		Budget	Actual	Differences
January	$ 29,000	$ 30,000	$    1,000	Unfavorable	$     29,000	$     30,000	$    1,000	Unfavorable
February	$ 34,000	$ 33,700	$        300	Favorable	$     63,000	$     63,700	$        700	Unfavorable
March	$ 39,000	$ 45,000	$    6,000	Unfavorable	$ 1,02,000	$ 1,08,700	$    6,700	Unfavorable