Fallon Company uses flexible budgets to control its selling expenses. Monthly sa

Question

Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $169,900 to $211,000. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 4%, traveling 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $34,700, depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,900.

Prepare a monthly flexible budget for each $13,700 increment of sales within the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs.)

FALLON COMPANY
Monthly Selling Expense Flexible Budget
For the Year 2017

FALLON COMPANY
Monthly Selling Expense Flexible Budget
For the Year 2017

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

$

$

$

$

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

$

$

$

$

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

AdvertisingActivity LevelDepreciationDeliveryFixed ExpensesInsuranceSalesSales CommissionsSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesTravelingVariable Expenses

$

$

$

$

Explanation / Answer

Prepare a monthly flexible budget for each $13,700 increment of sales within the relevant range for the year ending December 31, 2017.

Sales 169900 183600 197300 211000 Variable selling expenses Selling commission 11893 12852 13811 14770 Advertising expenses 6796 7344 7892 8440 Travelling expenses 6796 7344 7892 8440 Delivery expenses 1699 1836 1973 2110 Total variable expenses 27184 29376 31568 33760 Fixed expenses Sales salaries 34700 34700 34700 34700 depreciation on delivery equipment 7500 7500 7500 7500 Insurance on delivery equipment 1900 1900 1900 1900 Total fixed expenses 44100 44100 44100 44100 Total selling expenses 71284 73476 75668 77860

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.