Part B RDX uses flexible budgets to control its selling expenses. Variable costs as a percentage of sales are as follows: Sales commissions 5% Advertising 4% Traveling 7% Delivery 1% Fixed selling expenses consist of sales salaries $45,500 and depreciation on delivery equipment $12,000. The actual selling expenses incurred in February 2019, by RDX are as follows: Sales commissions $19,200 $12,800 Advertising Traveling Delivery $20,200 $3,600 Actual fixed selling expenses consist of sales salaries $41,500 and depreciation on delivery equipment $12,000. Required: Assuming that February sales were $330,000, prepare a flexible budget performance report for February. For each item in the report state where applicable, if the difference is Favourable or Unfavourable.
Part B RDX uses flexible budgets to control its selling expenses. Variable costs as a percentage of sales are as follows: Sales commissions 5% Advertising 4% Traveling 7% Delivery 1% Fixed selling expenses consist of sales salaries $45,500 and depreciation on delivery equipment $12,000. The actual selling expenses incurred in February 2019, by RDX are as follows: Sales commissions $19,200 $12,800 Advertising Traveling Delivery $20,200 $3,600 Actual fixed selling expenses consist of sales salaries $41,500 and depreciation on delivery equipment $12,000. Required: Assuming that February sales were $330,000, prepare a flexible budget performance report for February. For each item in the report state where applicable, if the difference is Favourable or Unfavourable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
STEP BY STEP PLEASE.
Transcribed Image Text:Part B
RDX uses flexible budgets to control its selling expenses. Variable costs as a percentage of sales are as
follows:
Sales commissions 5%
Advertising
4%
Traveling
7%
Delivery
1%
Fixed selling expenses consist of sales salaries $45,500 and depreciation on delivery equipment $12,000.
The actual selling expenses incurred in February 2019, by RDX are as follows:
Sales commissions
$19,200
Advertising
$12,800
Traveling
$20,200
Delivery
$3,600
Actual fixed selling expenses consist of sales salaries $41,500 and depreciation on delivery equipment
$12,000.
Required: Assuming that February sales were $330,000, prepare a flexible budget performance report
for February. For each item in the report state where applicable, if the difference is Favourable or
Unfavourable.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education