The actual selling expenses incurred in March 2020 by Fallon Company are as follows.Variable Expenses Fixed ExpensesSales commissions $11,180 Sales salaries $35,500Advertising 10,530 Depreciation 7,400Travel 6,920 Insurance 1,100Delivery 3,580 (a) Prepare a flexible budget performance report for March, assuming that March sales were $173,000. 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 salaries $35,500, Depreciation on delivery equipment $7,400, and insurance on delivery equipment $1,100. (List variable costs before fixed costs.)FALLON COMPANYSelling Expense Flexible Budget ReportFor the Month Ended March 31, 2020 Difference Budget Actual FavorableUnfavorableNeither Favorablenor UnfavorableSelect an opening flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses $Enter a dollar amount $Enter a dollar amount Select an opening name for section one AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses Select a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses $Enter a dollar amount $Enter a dollar amount $Enter the difference Select an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses Enter a dollar amount Enter a dollar amount Enter the differenceSelect an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses Enter a dollar amount Enter a dollar amount Enter the differenceSelect an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses Enter a dollar amount Enter a dollar amount Enter the differenceSelect an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect a closing name for section one Enter a total amount for section one Enter a total amount for section one Enter the differenceSelect an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect an opening name for section two Select a flexible budget report item Enter a dollar amount Enter a dollar amount Enter the differenceSelect an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect a flexible budget report item Enter a dollar amount Enter a dollar amount Enter the differenceSelect an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect a flexible budget report item Enter a dollar amount Enter a dollar amount Enter the differenceSelect an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect a closing name for section two Enter a total amount for section two Enter a total amount for section two Enter the differenceSelect an option FavorableUnfavorableNeither Favorable nor UnfavorableSelect a closing flexible budget report item $Enter a total dollar amount $Enter a total dollar amount $Enter the difference Select an option FavorableUnfavorableNeither Favorable nor Unfavorable

Flexible budget is dynamic and changes with the change in the volume of activity.

Answered: he actual selling expenses incurred in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The actual selling expenses incurred in March 2020 by Fallon Company are as follows.

Variable Expenses	Fixed Expenses
Sales commissions	$11,180	Sales salaries	$35,500
Advertising	10,530	Depreciation	7,400
Travel	6,920	Insurance	1,100
Delivery	3,580

(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,000. 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 salaries $35,500, Depreciation on delivery equipment $7,400, and insurance on delivery equipment $1,100. (List variable costs before fixed costs.)

FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2020
			Difference
	Budget	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
Select an opening flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses	$Enter a dollar amount	$Enter a dollar amount
Select an opening name for section one AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses
Select a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses	$Enter a dollar amount	$Enter a dollar amount	$Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses	Enter a dollar amount	Enter a dollar amount	Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses	Enter a dollar amount	Enter a dollar amount	Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses	Enter a dollar amount	Enter a dollar amount	Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a closing name for section one	Enter a total amount for section one	Enter a total amount for section one	Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select an opening name for section two
Select a flexible budget report item	Enter a dollar amount	Enter a dollar amount	Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a flexible budget report item	Enter a dollar amount	Enter a dollar amount	Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a flexible budget report item	Enter a dollar amount	Enter a dollar amount	Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a closing name for section two	Enter a total amount for section two	Enter a total amount for section two	Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a closing flexible budget report item	$Enter a total dollar amount	$Enter a total dollar amount	$Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable

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