Partially correct answer. Your answer is partially correct. Try again. The actua
ID: 2395060 • Letter: P
Question
Partially correct answer. Your answer is partially correct. Try again. The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,228 Sales salaries $35,000 Advertising 10,086 Depreciation 7,200 Travel 8,355 Insurance 1,900 Delivery 3,422 (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,100. 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 $35,000, Depreciation on delivery equipment $7,200, and insurance on delivery equipment $1,900. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Entry field with correct answer Entry field with correct answer $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with correct answer Entry field with correct answer (b) Prepare a flexible budget performance report, assuming that March sales were $175,500. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer Entry field with incorrect answer Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Entry field with incorrect answer
Explanation / Answer
Part A
Fallon company
Selling expense flexible budget report
For the Month Ended March 31, 2017
13368
(167100*8%)
10026
(167100*6%)
8355
(167100*5%)
3342
(167100*2%)
80
Part B
Fallon company
Selling expense flexible budget report
For the Month Ended March 31 2017
14040
(175500*8%)
10530
(175500*6%)
8775
(175500*5%)
3510
(175500*2%)
Budget actual difference favorable or Unfavorable Sales 167100 167100 Variable expenses Sales commission13368
(167100*8%)
14228 860 U Advertising10026
(167100*6%)
10086 60 U Travel8355
(167100*5%)
8355 - Delivery3342
(167100*2%)
342280
U Total variable expenses 35091 36091 1000 U Fixed expenses Sales Salaries 35000 35000 - Depreciation 7200 7200 - Insurance 1900 1900 - Total fixed expenses 44100 44100 - Total expenses 79191 80191 1000 U