The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,576 Sales salaries $34,700 Advertising 12,174 Depreciation 6,700 Travel 8,610 Insurance 1,200 Delivery 3,554 (a) Prepare a flexible budget performance report for March, assuming that March sales were $172,200. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 7%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,700, Depreciation on delivery equipment $6,700, and insurance on delivery equipme $1,200. (List variable costs before fixed costs.)

The actual selling expenses incurred in March 2017 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,576 Sales salaries $34,700 Advertising 12,174 Depreciation 6,700 Travel 8,610 Insurance 1,200 Delivery 3,554 (a) Prepare a flexible budget performance report for March, assuming that March sales were $172,200. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 7%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,700, Depreciation on delivery equipment $6,700, and insurance on delivery equipme $1,200. (List variable costs before fixed costs.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 13PB: Artic Camping Gears currently sells 35,000 units at $73 per unit. Its expenses are as follows:...

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Selling and administrative expense budget and budgeted income statement Budgeted selling and administrative expenses for Scottsdale Styles Inc. in P7-4 for the year ended December 31, 2016, were as follows: Required: 1. Prepare a selling and administrative expenses budget, in good form, for the year 2016. 2. Using the information above and the budgets prepared in P7-4, prepare a budgeted income statement for the year 2016, assuming an income tax rate of 30%.
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Artic Camping Gears currently sells 35,000 units at $73 per unit. Its expenses are as follows: Management believes it can increase sales by 2,000 units for every $5 decrease in sales price. It also believes the additional sales will allow a decrease in direct material of $1 for each additional 2,000 units. Prepare a flexible budgeted income statement for 35,000-, 37,000-, and 39,000-unit sales.
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