Variable Expenses Fixed Expenses FALLON COMPANY Selling Expense Flexible Budget
ID: 2395901 • Letter: V
Question
Variable Expenses
Fixed Expenses
FALLON COMPANY
Selling Expense Flexible Budget Report
For the Month Ended March 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
FALLON COMPANY
Selling Expense Flexible Budget Report
For the Month Ended March 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
SAVE FOR LATER
SUBMIT 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 $11,272 Sales salaries $34,900 Advertising 10,552 Depreciation 7,500 Travel 8,685 Insurance 1,600 Delivery 3,534(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,700. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,900, Depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,600. (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
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
$ $AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
$ $ $FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
$ $ $FavorableUnfavorableNeither Favorable nor Unfavorable
(b) Prepare a flexible budget performance report, assuming that March sales were $181,000. (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
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
$ $AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
$ $ $FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
FavorableUnfavorableNeither Favorable nor Unfavorable
AdvertisingDepreciationDeliveryFixed CostsInsuranceSalesSales CommissionsSales SalariesTotal CostsTotal Fixed CostsTotal Variable CostsTravelVariable Costs
$ $ $FavorableUnfavorableNeither Favorable nor Unfavorable
Explanation / Answer
1) Budget Actual Difference sale units 173,700 173,700 Variable costs Sales commissions 10422 11,272 850 U Advertising 10422 10,552 130 U travel 8685 8,685 0 N Delivery 3474 3,534 60 U total variable costs 33003 34,043 1,040 U Fixed epxnese Sales salaries 34,900 34,900 0 N Depreciation 7,500 7,500 0 N insurance 1,600 1,600 0 N total fixed expense 44,000 44,000 0 N net operating income 77,003 78,043 1,040 U 2) Budget Actual Difference sale units 181,000 181,000 Variable costs Sales commissions 10860 11,272 412 U Advertising 10860 10,552 308 F travel 9050 8,685 365 F Delivery 3620 3,534 86 F total variable costs 34390 34,043 347 F Fixed epxnese Sales salaries 34,900 34,900 0 N Depreciation 7,500 7,500 0 N insurance 1,600 1,600 0 N total fixed expense 44,000 44,000 0 N net operating income 78,390 78,043 347 F
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.