Reference no: EM132743259

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

Variable Expenses                         Fixed Expenses

Sales commissions $10,978           Sales salaries $35,100

Advertising 11,911                   Depreciation 7,300

Travel 8,415                             Insurance 1,900

Delivery 3,446

Problem (a) Make a flexible budget performance report for March, assuming that March sales were $168,300. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 7%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,100, Depreciation on delivery equipment $7,300, and insurance on delivery equipment $1,900. (List variable costs before fixed costs.)

Problem (b) Make a flexible budget performance report, assuming that March sales were $177,000. (List variable costs before fixed costs.)