Question 4 A). Briefly discuss the difference between traditional costing and activity-based costing ( B). TruValue Company uses flexible budget to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales commission 6%, advertising 4%, traveling 3% and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000. The actual selling expenses incurred in March, 2023 are: Variable Expenses Sales commission Advertising Travel Delivery $11,000 6,900 5,100 3,450 Fixed Expenses $35,000 Sales salaries Depreciation Insurance 7,000 1,000 a) Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2023. b) Prepare a flexible budget performance report for March, assuming that March sales were $170,000. c) Comment on the Management's efficiency in controlling selling expenses in March. [ 3 dt کار
Question 4 A). Briefly discuss the difference between traditional costing and activity-based costing ( B). TruValue Company uses flexible budget to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales commission 6%, advertising 4%, traveling 3% and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000. The actual selling expenses incurred in March, 2023 are: Variable Expenses Sales commission Advertising Travel Delivery $11,000 6,900 5,100 3,450 Fixed Expenses $35,000 Sales salaries Depreciation Insurance 7,000 1,000 a) Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2023. b) Prepare a flexible budget performance report for March, assuming that March sales were $170,000. c) Comment on the Management's efficiency in controlling selling expenses in March. [ 3 dt کار
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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![Question 4
A). Briefly discuss the difference between traditional costing and activity-based costing (
B). TruValue Company uses flexible budget to control its selling expenses. Monthly sales are
expected to range from $170,000 to $200,000. Variable costs and their percentage
relationship to sales are sales commission 6%, advertising 4%, traveling 3% and delivery 2%.
Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery
equipment $7,000, and insurance on delivery equipment $1,000.
The actual selling expenses incurred in March, 2023 are:
Variable Expenses
Sales commission
Advertising
Travel
Delivery
$11,000
6,900
5,100
3,450
Fixed Expenses
$35,000
Sales salaries
Depreciation
Insurance
7,000
1,000
a) Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant
range for the year ending December 31, 2023.
b) Prepare a flexible budget performance report for March, assuming that March sales were
$170,000.
c) Comment on the Management's efficiency in controlling selling expenses in March. [
3
dt
کار](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ef68eb4-0d24-4c11-b1fe-5f183f3319aa%2F9bd1ab01-54b2-4e7c-85cc-3cb168428c67%2Fk4wytru_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 4
A). Briefly discuss the difference between traditional costing and activity-based costing (
B). TruValue Company uses flexible budget to control its selling expenses. Monthly sales are
expected to range from $170,000 to $200,000. Variable costs and their percentage
relationship to sales are sales commission 6%, advertising 4%, traveling 3% and delivery 2%.
Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery
equipment $7,000, and insurance on delivery equipment $1,000.
The actual selling expenses incurred in March, 2023 are:
Variable Expenses
Sales commission
Advertising
Travel
Delivery
$11,000
6,900
5,100
3,450
Fixed Expenses
$35,000
Sales salaries
Depreciation
Insurance
7,000
1,000
a) Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant
range for the year ending December 31, 2023.
b) Prepare a flexible budget performance report for March, assuming that March sales were
$170,000.
c) Comment on the Management's efficiency in controlling selling expenses in March. [
3
dt
کار
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