Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $169,100 $208,700. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travel 4% delivery 1%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,500, an insurance on delivery equipment $1,800. Prepare a monthly selling expense flexible budget for each $13,200 increment of sales within the relevant range for the ending December 31, 2020. (List variable costs before fixed costs.) FALLON COMPANY Monthly Selling Expense Flexible Budget For the Year 2020
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $169,100 $208,700. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travel 4% delivery 1%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,500, an insurance on delivery equipment $1,800. Prepare a monthly selling expense flexible budget for each $13,200 increment of sales within the relevant range for the ending December 31, 2020. (List variable costs before fixed costs.) FALLON COMPANY Monthly Selling Expense Flexible Budget For the Year 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $169,100 to
$208,700. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travel 4%, and
delivery 1%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,500, and
insurance on delivery equipment $1,800.
Prepare a monthly selling expense flexible budget for each $13,200 increment of sales within the relevant range for the year
ending December 31, 2020. (List variable costs before fixed costs.)
Variable Expenses
Sales Commissions
Advertising
Travel
Delivery
Depreciation
Insurance
Total Fixed Expenses
>
>
FALLON COMPANY
Monthly Selling Expense Flexible Budget
For the Year 2020
$
$
$
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