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Crede Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,200 in January, $34,525 in February, and $46,000 in March.
Instructions:
1. Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.
2. What is the purpose of the report prepared in “a”, and who would be the primary recipient?
3. What would be the likely result of management’s analysis of the report?
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