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The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Sales commission...

The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Sales commissions $12,(b) Prepare a flexible budget performance report, assuming that March sales were $176,800. (List variable costs before fixedSelling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable

The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Sales commissions $12,741 Advertising 10,258 Travel 6,772 Delivery 3,446 Fixed Expenses Sales salaries $35,300 Depreciation 7,000 Insurance 1,800 (a) Prepare a flexible budget performance report for March, assuming that March sales were $169,300. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,300, Depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,800. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual
(b) Prepare a flexible budget performance report, assuming that March sales were $176,800. (List variable costs before fixed costs.)
Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual
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ReportAnswer #1
Fallon Company
Selling Expenses Flexible Budget
Budget Actual Difference Calculation for budget
169300 169300
Variable Costs
Sales commissions 11851 12741 890 U 169300 * 7 %
Advertising 10158 10258 100 U 169300 * 6 %
Travelling 6772 6772 0 169300 * 4 %
Delivery 3386 3446 60 U 169300 * 2 %
Total VC 32167 33217 1050 U
Fixed OH Costs
Salaries 35300 35300 0
Depreciation 7000 7000 0
Insurance 1800 1800 0
Total FC 44100 44100 0 0
Total Budgted costs 76267 77317 1050 U
Fallon Company
Selling Expenses Flexible Budget
Budget Actual Difference Calculation for budget
176800 169300
Variable Costs
Sales commissions 12376 12741 365 U 176800 * 7%
Advertising 10608 10258 -350 F 176800 * 6%
Travelling 7072 6772 -300 F 176800 * 4%
Delivery 3536 3446 -90 F 176800 * 2%
Total VC 33592 33217 -375 F
Fixed OH Costs
Salaries 35300 35300 0
Depreciation 7000 7000 0
Insurance 1800 1800 0
Total FC 44100 44100 0 0
Total Budgted costs 77692 77317 -375 U
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