Demonstration models given out Sales in units Variable expenses Sales commissions Advertising expense Travel expense Jennings Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 5,500 $164,000 42,000 247,000 116,000 Total variable 569,000 Fixed expenses Rent 7,500 Sales salaries 60,000 Office salaries 40,000 Depreciation - vans (sales staff) 3,000 Total fixed 110,500 $679,500 Total expenses Prepare a budget report for December based on flexible budget data. The new depreciation amount should be included in the budgeted fixed costs. Do you think the new plan is valid? Explain.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Demonstration models given out
Sales in units
Variable expenses
Sales commissions
Advertising expense
Travel expense
Jennings Outdoor Company
Winter Sports Department
Results
For the Month Ended December 31, 2020
5,500
$164,000
42,000
247,000
116,000
Total variable
569,000
Fixed expenses
Rent
7,500
Sales salaries
60,000
Office salaries
40,000
Depreciation - vans (sales staff)
3,000
Total fixed
110,500
$679,500
Total expenses
Prepare a budget report for December based on flexible budget data. The new depreciation
amount should be included in the budgeted fixed costs. Do you think the new plan is valid?
Explain.
Transcribed Image Text:Demonstration models given out Sales in units Variable expenses Sales commissions Advertising expense Travel expense Jennings Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 5,500 $164,000 42,000 247,000 116,000 Total variable 569,000 Fixed expenses Rent 7,500 Sales salaries 60,000 Office salaries 40,000 Depreciation - vans (sales staff) 3,000 Total fixed 110,500 $679,500 Total expenses Prepare a budget report for December based on flexible budget data. The new depreciation amount should be included in the budgeted fixed costs. Do you think the new plan is valid? Explain.
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