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 (b) Prepare a flexible budget performance report, assuming that March sales were $180,500. (List variable costs before fixed costs.)
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.
The actual selling expenses incurred in March 2020 by Fallon Company are as follows.
Variable Expenses
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Fixed Expenses
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Sales commissions | $11,180 | Sales salaries | $35,500 | |||
Advertising | 10,530 | 7,400 | ||||
Travel | 6,920 | Insurance | 1,100 | |||
Delivery | 3,580 |
(b) Prepare a flexible budget performance report, assuming that March sales were $180,500. (List variable costs before fixed costs.)
FALLON COMPANY
Selling Expense Flexible Budget Report For the Month Ended March 31, 2020 |
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Difference
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Budget
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Actual
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Favorable
Unfavorable Neither Favorable nor Unfavorable |
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Select an opening flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses
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$Enter a dollar amount
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$Enter a dollar amount
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Select an opening name for section one AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses
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Select a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses
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$Enter a dollar amount
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$Enter a dollar amount
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$Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses
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Enter a dollar amount
|
Enter a dollar amount
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Enter the difference
|
Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
|
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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
|
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Select a flexible budget report item AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses
|
Enter a dollar amount
|
Enter a dollar amount
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Enter the difference
|
Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a closing name for section one AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses
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Enter a total amount for section one
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Enter a total amount for section one
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an opening name for section two AdvertisingDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelVariable Expenses
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Select a flexible budget report item
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Enter a dollar amount
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a flexible budget report item
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Enter a dollar amount
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a flexible budget report item
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Enter a dollar amount
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a closing name for section two
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Enter a total amount for section two
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Enter a total amount for section two
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a closing flexible budget report item
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$Enter a total dollar amount
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$Enter a total dollar amount
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$Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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