### Selling Expenses for Fallon Company in March 2017The actual selling expenses incurred in March 2017 by Fallon Company are detailed in the table below:| **Variable Expenses** | **Fixed Expenses** ||------------------------------|-----------------------------|| Sales commissions $14,576 | Sales salaries $34,700 || Advertising $12,174 | Depreciation $6,700 || Travel $8,610 | Insurance $1,200 || Delivery $3,554 | |#### Analysis and Budget Preparation(a) **Flexible Budget Performance Report - March with Sales of $172,200** The preparation of a flexible budget performance report for March should consider the given variable costs and their percentage relation to sales and also fixed expenses. **Variable Costs:**- Sales commissions: 8%- Advertising: 7%- Traveling: 5%- Delivery: 2%**Fixed Costs:**- Sales salaries: $34,700- Depreciation on delivery equipment: $6,700- Insurance on delivery equipment: $1,200**Diagram Explanation:**The diagram provided outlines the flexible budget performance report for March:1. **Budget Table:** - Left column for budgeted values. - Middle column for actual values. - Right column for the difference, noted as favorable or unfavorable. 2. **Entries:** - This contains rows corresponding to each expense type where the user can input numerical values. - There are dropdown options to categorize the difference as 'Favorable,' 'Unfavorable,' or 'Neither Favorable nor Unfavorable'.(b) **Flexible Budget Performance Report - with Sales of $180,500**Preparation of another flexible budget performance report is required assuming that March sales were $180,500. This should similarly list variable costs before fixed costs.**Diagram Explanation:**The second diagram is similar but specifically for the scenario where sales are $180,500, structured in the same manner as the first:1. **Budget Table:** - Contains columns for budgeted and actual values, along with a column showing difference. - Differences are marked as favorable, unfavorable, or neutral.2. **Entries:** - This repeats the row structure for different expense types where budgeted and actual values can be inserted along with the evaluation of the difference.These diagrams use a user-friendly format to allow ### Fallon Company: Selling Expense Flexible Budget Report for March 2017This document is a representation of Fallon Company's Selling Expense Flexible Budget Report for the month ending on March 31, 2017. It is an essential tool for analyzing and comparing the budgeted and actual selling expenses incurred by the company during this period. The report helps in determining the favorable or unfavorable variances and provides insights into how well the company managed its selling expenses.#### Sections of the Report:1. **Header:** - Title: "Fallon Company Selling Expense Flexible Budget Report" - Period: "For the Month Ended March 31, 2017"2. **Columns:** - **Budget:** This column indicates the budgeted amounts for each selling expense category. - **Actual:** This column shows the actual amounts incurred for each selling expense category during the month. - **Difference:** This column calculates the variance between the budgeted and actual amounts, determining whether the variance is favorable, unfavorable, or neither.3. **Expense Categories:** - **Advertising:** Budgeted vs. actual spending on advertising. - **Depreciation:** Budgeted vs. actual depreciation costs. - **Delivery:** Budgeted vs. actual delivery expenses. - **Fixed Costs:** Aggregate of all fixed selling expenses. - **Insurance:** Budgeted vs. actual insurance expenses. - **Sales:** General sales costs, budgeted vs. actual. - **Sales Commissions:** Commission based on actual sales vs. budgeted commissions. - **Sales Salaries:** Salaries of sales personnel, comparing budget vs. actual. - **Total Costs:** Sum of all selling expenses. - **Total Fixed Costs:** Total of all fixed selling expenses. - **Total Variable Costs:** Total of all variable selling expenses. - **Travel:** Travel-related expenses, budgeted vs. actual. - **Variable Costs:** Specific variable costs, comparing budgeted vs. actual expenses.4. **Detailed Line Items:** - For each expense category, there are fields for: - **Budgeted Amount:** represented by $. - **Actual Amount:** represented by $. - **Difference:** a calculated field showing $. - **Status:** a drop-down selection indicating if the difference is: - Favorable - Unfavorable - Neither Favorable nor UnfavorableThis report format allows

The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,576 Sales salaries $34,700 Advertising 12,174 Depreciation 6,700 Travel 8,610 Insurance 1,200 Delivery 3,554 (a) Prepare a flexible budget performance report for March, assuming that March sales were $172,200. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 7%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,700, Depreciation on delivery equipment $6,700, and insurance on delivery equipme $1,200. (List variable costs before fixed costs.)

The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,576 Sales salaries $34,700 Advertising 12,174 Depreciation 6,700 Travel 8,610 Insurance 1,200 Delivery 3,554 (a) Prepare a flexible budget performance report for March, assuming that March sales were $172,200. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 7%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,700, Depreciation on delivery equipment $6,700, and insurance on delivery equipme $1,200. (List variable costs before fixed costs.)

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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