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Westwood Music uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400,000 to $450,000. Variable costs and their percentage relationships to sales are: Sales commissions 8% Advertising 5% Travelling Delivery 2% Fixed selling expenses consist of sales salaries of $50,000 and depreciation on stage and production equipment totalling $12,000. The actual selling expenses incurred in March, 2020, by Westwood Music are as follows: Sales commissions $35,000 Advertising 19,800 Travel 64,000 Delivery 8,200 Fixed selling expenses consist of sales salaries of $48,800 and depreciation of $11,000. 15%

Westwood Music uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400,000 to $450,000. Variable costs and their percentage relationships to sales are: Sales commissions 8% Advertising 5% Travelling Delivery 2% Fixed selling expenses consist of sales salaries of $50,000 and depreciation on stage and production equipment totalling $12,000. The actual selling expenses incurred in March, 2020, by Westwood Music are as follows: Sales commissions $35,000 Advertising 19,800 Travel 64,000 Delivery 8,200 Fixed selling expenses consist of sales salaries of $48,800 and depreciation of $11,000. 15%

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Question: Westwood Music uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400,000 to $450,000. Variable costs and their percentage relationships to sales are: Sales commissions 8% 5% Advertising Travelling Delivery 2% Fixed selling expenses consist of sales salaries of $50,000 and depreciation on stage and production equipment totalling $12,000. The actual selling expenses incurred in March, 2020, by Westwood Music are as follows: Sales commissions $35,000 Advertising 19,800 Travel 64,000 Delivery 8,200 Fixed selling expenses consist of sales salaries of $48,800 and depreciation of $11,000. 15%
Transcribed Image Text:Question: Westwood Music uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400,000 to $450,000. Variable costs and their percentage relationships to sales are: Sales commissions 8% 5% Advertising Travelling Delivery 2% Fixed selling expenses consist of sales salaries of $50,000 and depreciation on stage and production equipment totalling $12,000. The actual selling expenses incurred in March, 2020, by Westwood Music are as follows: Sales commissions $35,000 Advertising 19,800 Travel 64,000 Delivery 8,200 Fixed selling expenses consist of sales salaries of $48,800 and depreciation of $11,000. 15%
Instructions a) prepare a flexible budget performance report, assuming that March sales were $420,000. Expected and actual sales are the same. b) What type of responsibility centre is this report being prepared for?
Transcribed Image Text:Instructions a) prepare a flexible budget performance report, assuming that March sales were $420,000. Expected and actual sales are the same. b) What type of responsibility centre is this report being prepared for?
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