Fixed Expenses $10,870 $35,500 0,080 Depreciation 6,680 Insurance (a) Prepare a

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Fixed Expenses $10,870 $35,500 0,080 Depreciation 6,680 Insurance (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,000. 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 laries $35,500, Depreciation delivery equipment $7,500, and delivery equipment $1,400. (List ts before fixed ts.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31 2017 Diffe Unf Unf ble Costs Sales Commissions Delivery Total Variable Costs Fixed Costs Sales Salaries Depreciation Insurance Total Fixed costs Total Costs (b) Prepare a flexible budget performance report, assuming that March sales were $175,000. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31 2017 Differ Unf Neither F Unf Bakes a ble Costs Sales Commissions Delivery Total Variable Costs Fixed Costs Sales Salaries Depreciation Insurance Total Fixed Costs Total costs s

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Answer to point no.(b)

FALLON COMPANY Selling expenses Flexible Budget report For the month ennded March 31,2017 Particulars Budget Actual Vaiance Sales               167,000           167,000 Variable Cost                       -   Sales Commission                 10,020             10,870                (850) Unfavorable Advertisment                 10,020             10,080                 (60) Unfavorable Travel                  6,680              6,680                   -                  -   Delivery                  3,340              3,450                (110) Unfavorable Total Variable Cost                 30,060             31,080             (1,020) Unfavorable Fixed Cost Salaries                 35,500             35,500                   -   Depreciation                  7,500              7,500                   -   Insurance                  1,400              1,400                   -   Total Fixed Cost                 44,400             44,400                   -   TOTAL COST                 74,460             75,480             (1,020) Unfavorable

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