Exercise 24-5 Your answer is partially correct. Try again. s 6%, Advertising S%,

Question

Exercise 24-5 Your answer is partially correct. Try again. s 6%, Advertising S%, Traveling 4%, and Delivery 196. DeWitt Company uses flexible budçets to control its selling expences. Monthly sales are expected to range from $172,200 to $207,900. Variable costs and their percentage relationship to sales are: Sales C Fixed selling expenees will consist of Sales Selarics $3S,AS0, Depreciation on Delivery Equipment $6,785, and Insurance on Delivery Equipment $1,204 on Prepare monthly flexible budget for each S 11.900 increment of sales within the relevant range for the year ending December 31, 2014. (List variable costs before fixed costs.) Monthly Selling Expense Flexible Budget For the Year 2014 Activity Lovel Total Variable Expenses Salcs Delivery Sales Commissions Traveling Total Variable Expenses Total Fixed Expenses Sales Salaries Insurance

Explanation / Answer

Activity level Sales 172200 184100 196000 207900 Variable expenses: Sales commissions 10332 11046 11760 12474 Advertising 8610 9205 9800 10395 Traveling 6888 7364 7840 8316 Delivery 1722 1841 1960 2079 Total variable expenses 27552 29456 31360 33264 Fixed expenses: Sales salaries 35450 35450 35450 35450 Depreciation 6785 6785 6785 6785 Insurance 1204 1204 1204 1204 Total fixed expenses 43439 43439 43439 43439 Total costs 70991 72895 74799 76703

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