Prepare a flexible budget performance report for march sales

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Reference no: EM13507562

The actual selling expenses incurred in March 2014 by DeWitt Company are as follows.

 

Variable Expenses
Fixed Expenses
Sales commissions
$14,650
Sales salaries
$35,023
Advertising
10,433
Depreciation
7,251
Travel
8,650
Insurance
1,582
Delivery
3,540


(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,000. Variable costs and their percentage relationship to sales are: Sales Commissions 8%, Advertising 6%, Traveling 5%, and Delivery 2%. Fixed selling expenses will consist of Sales Salaries $35,023, Depreciation on Delivery Equipment $7,251, and Insurance on Delivery Equipment $1,582. (List variable costs before fixed costs.)

(b) Prepare a flexible budget performance report, assuming that March sales were $181,300.

Reference no: EM13507562

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