Exercise 10-6 The actual selling expenses incurred in March 2017 by Fallon Compa

Question

Exercise 10-6 The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions Advertising Travel Delivery $14,684 Sales salaries 10,458 Depreciation 8,615 Insurance $34,900 7,300 1,400 3,546 (a) prepare a flexible budget performance report for March, assuming that March sales were $172,300. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 69 traveling 5% and delivery 29 Fixed selling expenses will consist of sales salaries $34,900 Depreciation on delivery equipment $7,300, and insurance on delivery equipment $1,400, (List variable costs before fixed costs.) ALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Fallon company Selling expense Flexible Budget Report For the month ended March 31'2017 Paticulars Budget Actual Difference F or U Or Neither F nor U Sales       172,300.00         172,300.00                              -   Neither F nor U Variable costs : Sales Commissions         13,784.00           14,684.00                  (900.00) U Advertising         10,338.00           10,458.00                  (120.00) U Travel           8,615.00             8,615.00                              -   Neither F nor U Delivery           3,446.00             3,546.00                  (100.00) U Total Variable costs         36,183.00           37,303.00               (1,120.00) U Fixed costs :   Sales salaries         34,900.00           34,900.00                              -   Neither F nor U Depreciation           7,300.00             7,300.00                              -   Neither F nor U Insurance           1,400.00             1,400.00                              -   Neither F nor U Total Fixed costs         43,600.00           43,600.00                              -   Neither F nor U Total Costs         79,783.00           80,903.00               (1,120.00) U b) Paticulars Budget Actual Difference F or U Or Neither F nor U Sales       181,100.00         181,100.00                              -   Neither F nor U Variable costs : Sales Commissions         14,488.00           14,684.00                  (196.00) U Advertising         10,866.00           10,458.00                     408.00 F Travel           9,055.00             8,615.00                     440.00 F Delivery           3,622.00             3,546.00                       76.00 F Total Variable costs         38,031.00           37,303.00                     728.00 F Fixed costs :   Sales salaries         34,900.00           34,900.00                              -   Neither F nor U Depreciation           7,300.00             7,300.00                              -   Neither F nor U Insurance           1,400.00             1,400.00                              -   Neither F nor U Total Fixed costs         43,600.00           43,600.00                              -   Neither F nor U Total Costs         81,631.00           80,903.00                     728.00 F

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