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The actual selling expenses incurred in March 2014 by DeWitt Company are as follows.
(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,000. Variable costs and their percentage relationship to sales are: Sales Commissions 8%, Advertising 6%, Traveling 5%, and Delivery 2%. Fixed selling expenses will consist of Sales Salaries $35,023, Depreciation on Delivery Equipment $7,251, and Insurance on Delivery Equipment $1,582. (List variable costs before fixed costs.)
(b) Prepare a flexible budget performance report, assuming that March sales were $181,300.
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